NEW DELHI: Home prices in the capital are set to go up further with Delhi government today hiking the circle rates -- the minimum valuation at which properties have to be registered -- by up to 20 per cent with an aim to check black money component in sale and purchase transactions.
As per the decision approved by Lt Governor Najeeb Jung, the circle rate has been increased to Rs 7.74 lakh per square metre of land from Rs 6.45 lakh in category A residential colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas.
This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs 6.45 lakh per sq m.
The new rates will come into effect from tomorrow. The land rates in Category B neighbourhood like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased to Rs 2,45,520 as against current rate of Rs 2,04,600 per sq m.
The circle rates in the city was last revised in November 2012. The rates were then hiked by a whopping 200 per cent.
For C category colonies, the circle rate has been hiked to Rs 1,59,840 from current Rs 1,33,224 per square metre while in neighbourhood under Category D the new rates will be Rs 1,27,680 as against existing rate of Rs 1,06,384.
The rate for colonies under category E has been hiked from Rs 58,365 to Rs 70,080 per square metre while for F category colonies the rate will be Rs 56,640 as against current rate of Rs 47,140.
In respect of category G colonies, the new rate will be Rs 46,200 per square metre as against existing Rs 38,442 while for H category colonies it has been hiked to Rs 23,280 from Rs 19,361.
The circle rates were first introduced in Delhi in 2007, dividing the capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.
Officials said the minimum property rates for commercial, industrial and other uses will be considered based on various other factors like age of the building and minimum rate of construction.
In category A colonies, the minimum rate of construction for residential use will be Rs 21,960 per sq m while it will be Rs 25,200 for commercial use.
For category B localities, the minimum rates of construction for residential use will be Rs 17,400 while for commercial use it will be Rs 19,920.
In category C colonies, the construction rate for residential use has been fixed at Rs 13,920 and for commercial use the minimum rate will be Rs 15,960 while in neighbourhoods under category D, the rate of construction for residential use will be Rs 11,160 and Rs 12,840 for commercial use.
For category E, the minimum residential and commercial rate of construction has been fixed at Rs 9,360 and Rs 10,800 respectively. In F category colonies, the minimum residential construction cost will be Rs 8,220 and for commercial use it will be Rs 9,480.
The government has made specific criteria for proper valuation of the properties based on age of the structures. To evaluate minimum valuation of properties, a point-based system has been introduced based on year of completion of construction of the buildings.
As for example, buildings constructed prior to 1960 will get 0.5 points, those built between 1960-69 will get 0.6 points while flats built between 1970-79 will be accorded 0.7 points.
Those built between 1980-89 and 1990-2000 will get 0.8 and 0.9 points respectively while all the buildings built 2000 onwards will get 1 point.
The government has also categorised flats depending on the plinth area based on which minimum built up rate has been finalised.
If the plinth area is up to 30 sq m then the minimum rate of built up area for DDA colonies and group housing societies in case of residential use will be Rs 50,400 while the minimum built up rate for DDA colonies, cooperative housing societies and flats by private builder for commercial use will be Rs 57,840.
If the built-up area is above 30 and up to 50 sq m, then the minimum rate for built up area for DDA colonies and group housing societies for residential use will be Rs 54,480 while for commercial use it will be Rs 62,520.
If the built up area is above 50 sq m and up to 100 sq m, then the built up rate will be Rs 66,240 per sq m while for commercial use it will be Rs 75,960.
Above 100 sq m, the rate for residential use will be Rs 76,200 while for commercial use, it will be Rs 87,360. The land rate for the properties will be calculated separately depending on the category of the colonies.
For flats having more than four storeys, a uniform rate per sq m of Rs 87,840 will be taken as minimum value of built up rate for residential purpose while if same is used for commercial purpose, the uniform rate of Rs 1,00,800 will be taken as minimum value of built up area per sq m.
If one floor of an independent property other than a flat is sold, then the relevant minimum land cost will be taken for proportionate plinth area sold and the minimum cost of construction will be applied on the plinth area, said an official.