After the recession induced lows, brace for yet another hike in property rates. A proposal for hiking of property circle rates in the delhi is likely to be taken up by the cabinet soon and sources say it could go up by 25-30%. Revenue minister Rajkumar Chauhan, however, was unwilling to put a figure. “It will not be appropriate for me to hazard a prediction about the extent of hike before the matter is taken up in the cabinet. We have sent the file and it is not yet certain when it will be considered,’’ he said.
Circle rates — the minimum price per square metre applicable for property deals areawise — were first introduced in July 2007. At present, the city is divided into eight categories where the rates range from Rs 6,900 per sqm to Rs 43,000 per sqm. No deal at rates below this minimum is registered. For some time now, there has been a feeling within the Delhi government that the rates are hardly a fair reflection of market prices and fail to curb black money transactions as intended. Besides, due to the blanket nature of categorization, a resettlement colony falling under area A would effectively command higher prices than what the facilities warrant.
Earlier this year, the government set up a committee on the proposal and besides rationalization of rates, authorities have brought up issues such as disclosure of number of floors at the time of registration. Though some sections in the government are talking of a possible increase in property prices if circle rates are hiked, the government’s defence has been that it has made it easier for the middle class to get bank loans.