[ecis2016.org] In this article, we explain circle rates in Meerut and the things you should keep in mind when registering property in the city
Due to the high property prices in Delhi, the average home buyer is unable to purchase a property in the capital. Owing to this situation, people are flocking to Meerut to purchase property at an inexpensive price. While buying a property in this city, home buyers should be aware of the circle rates in Meerut.
You are reading: All about circle rates in Meerut
Circle rate: What you should know
The circle rate is the lowest price at which a built-up house, land, or commercial property can be sold or transferred. It is the minimum property value at which the state collects stamp duty and registration charges. A buyer must register the property on the prescribed circle rate or the transaction value (market rate) negotiated with the seller. The market rate is usually greater than the circle rate and no property can be registered below the circle rate set by the state legislature.
To keep circle rates aligned with market prices of properties, they are frequently updated. In short, the circle rate is a market indicator. However, it cannot be used to compute exact property prices.
For example, if the circle rate in Meerut for a given house is Rs 75 lakhs and the buyer purchases the house at a market rate of Rs 80 lakhs, then, the buyer must pay a stamp duty on Rs 80 lakhs. If the mrket rate is below the circle rate, the buyer must declare the differential between both the circle rate and the market price (Rs 5 lakhs) as ‘other income’ and pay tax on it. For the seller, the circle rates are also useful for calculating the capital gains tax.
Here are a few things to remember when it comes to the circle rate:
- Circle rates provide a general pricing guide.
- The price is set by the state authorities or the local planning commission.
- Various parts of the same city may have the same or different circle rates.
- Subject to certain relaxations, real estate transactions are not permitted to take place below the circle rates.
- The buyer must register the property at the specified circle rate or the existing transaction value, whichever is higher.
Circle rates in Meerut
Circle rates in Meerut provide insight into the real estate market’s overall direction. These patterns might assist an investor in determining the optimal time to purchase or sell a property in Meerut. Currently, properties in Meerut commence at roughly 2.20 lakhs, with an average price of 62.50 lakhs. When it comes to circle rates in Meerut, nearly five places are witnessing increasing price trends, while three are experiencing a downward trend. Overall, Meerut’s price trend has been increasing during the last six months.
Read also : Everything real estate agents need to know about the RERA
The optimal time to buy a property in Meerut is during a market correction but predicting when a particular circle rate in Meerut will reach its lowest price point is tricky. Our exhaustive study on the average price per sq ft in Meerut enables buyers to make an informed choice moving forward.
|Locality||Average price per sq ft|
|Rohta Road||Rs 4,417|
|Shatabdi Nagar||Rs 6,666|
|Meerut Bypass Road||Rs 11,361|
|Delhi Road||Rs 11,323|
|Delhi Meerut Expressway||Rs 5,466|
|Shastri Nagar||Rs 5,500|
|Lohia Nagar||Rs 2,392|
|Meerut Cantt||Rs 2,657|
|Kanker Khera||Rs 4,064|
The most sought-after locations for residential projects in Meerut include Meerut Bypass, Hapur Road and Cantonment Road, while areas like Mawana Road and Modipuram are excellent choices for both, commercial and residential development.
How are circle rates in Meerut different from the market value?
Understanding the difference between market and circle rates in Meerut is critical to making an informed decision. The market value of a property is the amount paid by a buyer. The property’s circle rate is merely a reflection of the current market conditions; it does not reflect the actual selling price of the home. To stay competitive, circle rates are reviewed regularly. In India, there is no price index to regulate real estate prices. Hence, circle rates in Meerut and other cities are employed as a measure to prevent irrational speculation in property values.
Stamp duty and registration fee in Meerut
When registering property in Meerut, the state government of Uttar Pradesh levies stamp duty and registration fees. The government of Uttar Pradesh imposes greater stamp duty fees than those of other states. Each jurisdiction has a set of fixed circle charges enforced by the government. The property’s worth must be at least as high as the circle rate to be properly registered. According to the UP government, stamp duty and registration fees are as follows:
Stamp duty and registration charges in UP 2021
|Applicant||Stamp duty charges||Registration charges|
|Joint (only women)||6%||1%|
|Joint (only men)||7%||1%|
Note: The 1% reduction in stamp duty rates granted to women in Uttar Pradesh applies only to transactions totalling Rs 10 lakhs.
What is the best way to pay stamp duty?
Stamp duty is a type of tax that serves as legal documentation of any property transaction or acquisition. Stamp duty charges vary per state. To avoid a late payment penalty, the person responsible for paying stamp duty will be obliged to do so either before or during the execution of the deed. This can be done by:
Physical stamp paper
There are several ways to pay stamp duty but this is the most traditional process. To keep track of transactions, you will need non-judicial stamp paper, which can be purchased from a licensed vendor. Sometimes it can be difficult to track down a reputable source. When the sums involved are great, the administrative burden climbs as well. With more viable options available, physical stamp papers are becoming less common.
The government has employed e-stamping to reduce the usage of counterfeit stamp papers while also streamlining the stamping process. E-stamping has become necessary in some states. It is the Stock Holding Corporation of India Limited (SHCIL) that is authorised to collect stamp duty on property purchases. Once you have made the payment, you will be sent an E-stamp certificate in the mail.
Read also : Property rates & trends in Medavakkam, Chennai
The stamp duty on your document will be applied by an authorised franking broker as soon as the money has been received. There is a 0.1% franking fee on all checks. When the sale deed is executed, the franking charge is deducted from the stamp duty due on the transaction.
- Are Delhi suburbs a good bet for property buyers in the present market?
- Maharashtra introduces changes to SRA to control corruption, delays
- Mhada Lottery 2019: Lottery for 950 MHADA flats in Nashik declared
- Top 10 affordable localities in Delhi for buying a house
- Maharashtra extends project completion deadlines by 9 months
What are the consequences of non-payment of stamp duty?
When buying a house or a business, you will be obligated to pay stamp duty on the deal. If, for various reasons, you are not able to pay the stamp duty on the day of registration, it can be paid on the next working day of the transaction date if the transaction is registered before that time. Defaulting on stamp duty payments will have long-term consequences. Fines start at 2% each month and go up to 200% of the outstanding amount.
The impressive rise of Meerut’s real estate sector
The city of Meerut is rapidly growing in popularity as a low-cost housing area in the National Capital Region. In Meerut, the availability of land at reasonable prices has given rise to the development of mid-segment residential and commercial properties that can accommodate an expanding population. The automotive, leather and sports industries all underpin Meerut’s industrial economy, which in turn has helped the property market grow in quick succession.
What factors are contributing to Meerut’s emergence as an investment destination?
Meerut’s low-cost real estate has spawned a new type of inexpensive housing that caters to the wants and demands of the city’s younger population. With large-scale residential constructions, Meerut is emerging as a prime real estate investment location.
The proximity of Noida and Gurugram, two of India’s most developed cities, to Meerut has been critical to the city’s growth. The construction of the Delhi-Meerut Expressway, will assist Meerut in becoming a major real estate market, thereby helping realtors, locals and commuters alike. The Delhi-Meerut Expressway (DME) and Delhi-Meerut Metro would improve connectivity in Meerut, making it more accessible both locally and to the NCR. As a result of these construction initiatives, property values in the residential and commercial sectors will continue to rise.
Retail business is expanding rapidly
Attributed to the prevalence of numerous upscale shopping centres, cinema halls and retail stores that employ a large number of highly skilled workers, the city offers enormous potential for the creation of retail enterprises. Era Mall, Melange Mall and Metro Plaza are some of the renowned shopping malls in the city.
Even though property prices in Meerut are increasing daily, they are not yet as expensive as those in India’s national capital. Investors and home buyers have shown interest in the city, because of its well-planned development, superb infrastructure and affordable land. Residential property demand in Meerut has increased, as apartments have become popular in many parts of the city.
I’m looking to sell my home. What documentation would a buyer require from me?
A buyer may request an actual Sale Deed, relevant tax receipts, Title Deed, and an Encumbrance Certificate.
Who is responsible for paying the stamp duty?
The Stamp Duty is paid by the buyer alone.
When does a residential property sale become legally valid?
If the seller has got the full consideration price, the documents have been registered, and the buyer has been granted physical possession of the property, the sale is considered legally valid.
Copyright belongs to: ecis2016.org