The rates in Category A colonies like Greater Kailash, Defence Colony, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas have been hiked by 200 per cent.
As per the rates approved by Delhi Cabinet today, Rs 6.45 lakh per square metre has been fixed as new circle rate for category A colonies as against existing rate of Rs 2.15 lakh.
This means nobody would be allowed to buy land and immovable properties in these colonies for less than Rs 6.45 lakh per square metre.
The rates in Category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased by 50 per cent while for rest of the areas, the hike has been fixed at 22 per cent.
As per the cabinet decision, Rs 2,04,600 per square metre has been fixed for B category colonies as against current rate of Rs 1,36,400 per square metre.
Delhi Revenue Secretary Dharampal said the government decided to hike the circle to cut the black money component in property transactions. He said government expects to generate an additional revenue of Rs 200 crore from hike in circle rates.
In 2011-12, the Delhi Government had collected Rs 2,000 crore in revenues from registration of properties and Rs 1,300 crore has been collected so far in current fiscal.
Dikshit said circle rates were increased as last hike was effected in November, 2011.
"The current rates are quite less than the prevailing market rates at which transactions are taking place. That is why we decided to hike it," Dikshit said adding, "In order to curb the flow of black money, it has become important to rationalise the minimum circle rates."
She said the Cabinet took a sympathetic view in effecting hike of the rates in colonies under categories C,D,E,F,G and H.
For C category colonies, the circle rate has been hiked to Rs 1,33,224 per square metre from current Rs 1,09,200 while in neighbourhoods under Category D the new rates will be Rs 1,06,384 as against existing rate of Rs 87,200.
The rate for colonies under category E has been hiked from Rs 47,840 to Rs 58,365 per square metre while for F category colonies the rate will be Rs 47,140 as against current rate of Rs 38,640.
In respect of category G colonies, the new rate will be Rs 38,442 per square metre as against existing Rs 31,510 while for H category colonies it has been hiked to Rs 19,361 from Rs 15,870.
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.
\'No immediate impact of hike in circle rate on realty prices\'
Developers and realty consultants today said there will be no immediate impact on property prices due to Delhi government\'s move to hike circle rates and felt the move will help to reduce black money transactions.
"The current circle rates are far lesser than the market prices... I do not think there will be any immediate impact due to this increase of circle rates. Property prices are always determined by the market forces. It is dependent on demand supply scenario," Jones Lang LaSalle (India) Chief Executive Officer (Operations) Santosh Kumar said.
He, however, said there may be some price hike in the long run due to this step.
"The best thing about raising the circle rates is that it will reduce the black money transactions. Now, the government will get more money and transparency in property dealings will increase," Kumar said.
Commenting on the development, National Real Estate Development Council (NARECO) President Navin M Raheja said the Delhi government has increased the circle rates to meet its revenue targets.
Asked about the impact on builders, he said: "We will not be affected as there is hardly any project in the primary market... The government is trying to bring the circle rate closer to the market price."
Raheja, however, said there will be some impact on the prices of properties traded in the secondary market.
Confederation of Real Estate Developers Association of India (CREDAI) NCR President Geetambar Anand said: "There will be slowdown in property transactions and prices will not increase as market is already down because of high interest rates and other factors."
The Delhi government today hiked the rates in Category A areas like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Golf Links and Hauz Khas by 200 per cent.
The rates in Category B neighbourhoods like Andrews Ganj, Kalkaji, Munirka Vihar and Nehru Enclave have been increased by 50 per cent, while for rest of the areas the increase has been fixed at 22 per cent.
The Delhi government expects to generate an additional revenue of Rs 200 crore from the hike in circle rates.