Delhi circle rate in 2022: All you need to know

[ecis2016.org] Check out circle rates in Delhi for flats, plots, multi-storey apartments in DDA and private colonies

Those buying property in the national capital have to pay stamp duty and registration charges based on Delhi circle rate. This makes it incumbent upon buyers to have a clear understanding of Delhi circle rate.

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What is circle rate?

Circle rate is the government-determined rate of land or property, which act as the threshold below which the property cannot be sold. Subject to periodic changes, circle rates are tweaked by district administrations in India to keep them close to the prevalent market rate of properties.

Delhi circle rate  

Delhi circle rate is the minimum price you have to pay when buying land, flats or apartment in the national capital. Delhi circle rate differs from area to area.

Delhi circle rate notification 2021

Delhi circle rates are decided by the union territory government. The Delhi government, in February 2021, announced a 20% cut in circle rate across all categories of properties – properties in the national capital are divided into eight categories – to make real estate more affordable. The 20% rebate in Delhi circle rates is applicable till December 31, 2021.

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Delhi circle rate for flats in 2022

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Delhi circle rate for residential and commercial plots in 2022

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Delhi circle rate of land in colonies

Factors that impact circle rate in Delhi 

Property circle rates in Delhi depend on a number of factors, such as:

• Facilities in the area: The more the facilities, the higher the circle rate in Delhi.
• Market value of the locality: The higher the market value, the higher the circle rate in Delhi.
• Category type of the area: Circle rates of properties in posh areas of Delhi are always higher than the rates in other areas.
• Type of property: While circle rates are lower for residential properties in Delhi, they are comparatively higher for commercial properties.

List of colonies in Delhi by category

To ease the process and keep it uniform across the city, the Delhi government has divided the properties in Delhi into eight categories – A to H. Delhi’s most expensive posh areas are in Category A while Category H has the lowest-value areas of the city. We will touch up on this topic in the latter sections of this article.

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How to calculate circle rates in Delhi?

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Home buyers and investors should know that the property registration process in Delhi and charges such as stamp duty, are based on the higher of the declared property value and the price calculated as per circle rate applicable for the sector or area of Delhi.

Usually, commercial properties have higher circle rates, as compared to residential properties. It may also vary, based on the type and age of the property. Properties built after the year 2000 have a maximum multiplier of 1 while the older buildings have it in the range of 0.5-0.9.

You can calculate the circle rates in Delhi by visiting the Delhi government’s online registration information system.

Alternatively, you can follow the below steps to calculate the circle rate in Delhi.

Step 1: Determine whether the property is used for residential or commercial purpose.

Step 2: Consider the type of property – whether it is a flat, apartment, independent house, or a plot of land. The circle rates of different property types vary, even if they fall in the same area.

Step 3: Factor in the ‘age multiplier’ to arrive at property valuation and determine the circle rate accordingly.

How to calculate property value in Delhi using circle rate?

Here is how to calculate the property value, using the circle rate:

1. Ascertain the property’s built-up area, plot area, age of construction, amenities, floors, etc.
2. Choose the type of property (residential or commercial unit, plot, house, apartment, builder floor, or shop).
3. Select the locality of the property
4. Calculate the minimum assessment figure as per the circle rates given

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The formula for calculating the property value is as given below:

Property value = Built-up area (in sq metres) x circle rate for the locality (in Rs per sq metre).

Circle rates – age factor in New Delhi

Delhi circle rate latest news

Delhi circle rate: Revenue Department plans sub-categorisation of areas 

Update on October 12, 2021: In a move that would bring Delhi circle rates of properties close to their market rates, the union territory government has decided to put in place a system, under which it would sub-categorise the existing eight categories of properties in the national capital. Properties in Delhi are divided into eight broad categories from A to H, for circle rate purposes.

Circle rates in ‘A’ category areas run up to Rs 7.74 lakhs per sq metre. Circle rates applicable to the least-developed ‘H’ category, are as low as Rs 23,280 per sq metre. The government now plans to insert 32 sub-categories within the eight broad categories. The logic behind the decision to launch sub-categories, is that localities within one category have different levels of physical and social infrastructure. This is true for each category, since each area is spread across large tracts of land. This is why evaluating all localities within one area under a board category might not be fair.

To evaluate areas more realistically and to determine circle rates based on the level of facilities a specific location enjoys, an evaluation committee was set up by the Delhi government’s Revenue Department earlier. The panel recommended that four to five sub-categories within the eight categories be created, to address the issue.

The recommendations of the panel are now being examined by a ministerial panel, following which it would be sent to the state government for approval. Changes in circle rate categories will be implemented only after it receives an approval from the Delhi Lieutenant Governor.

If implemented, the change in circle rate categories in Delhi will hike rates of properties in many areas, resulting in huge value appreciation for property owners. The move will also help the Delhi government garner higher revenues as stamp duty collection on property transactions.

Recall here that circle rates in Delhi have not been revised since 2014, resulting in huge differences between the circle rates and the market rates of properties in many areas. State governments are authorised to periodically revise the circle rates to keep them closer to the market rates of properties.

Delhi circle rate FAQs

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