The recent hit of COVID has slashed the real estate sector across the major cities in India. The capital city Delhi was one among the victims suffering from no progress in the industry. To boost up the real estate investment in the city after the pandemic hit, the Delhi government has announced a 20% rebate on the circle Rate in Delhi on the immovable properties and land through Delhi govt circle rates notification 2021 pdf. The rebate period on circle rate was initially announced till December 30th, 2021, but now extended till 30th June 2022.
Delhi circle rates
Circle rates are the minimum transaction value of the property decided by the government. The DLC rates are announced by the government as per sqmt, and this price varies for each location in the Delhi area. There was no circle rate in Delhi in 2001, and each land and property had to undergo valuation for the purpose of capital tax gains. The circle rates were first introduced in the year 2007 through the Delhi circle rates notification 2007. The government has announced a rebate on DLC rates through the Delhi circle rates notification 2021 pdf. Anybody willing to purchase the property in the capital city Delhi has to pay the stamp duty and registration to a percentage of the minimum transaction value of the property. People purchasing property during the period of circle rate rebate are likely to benefit from reduced stamp duty and registration charges. For more information on the rebate circle rate in Delhi, you can refer Delhi circle rates notification 2022 pdf. There are various factors that influence the circle rates of the city like demand, supply, and other development indicators.
Categories of properties
The property type in the Delhi region is broadly classified into three types residential, commercial, and industrial and the announced 20% rebate is applicable on all kinds of properties aimed at giving impetus to stand still sector after covid pandemic hit. The rebates on the circle rates will be functional till 30th June 2022. This is the right time for real estate investments in Delhi to make the most of it. The rebate is extended to all eight categories of municipal areas designated A to H. Posh areas of the city fall under the A category, and the least developed ones are clubbed under the H category.
Delhi circle rates category wise
| Category | Construction cost (square meter) | circle rate in Delhi (square meter) |
| A | 21,960 | 7,74,000 |
| B | 17,400 | 2,46,000 |
| C | 13,920 | 1,60,000 |
| D | 11,160 | 1,28,000 |
| E | 9,360 | 70,080 |
| F | 8,220 | 56,640 |
| G | 6,960 | 46,200 |
| H | 3,480 | 23,280 |
Impact of reduced circle rates in Delhi
The circle rates in Delhi in 2022 has created the desired boost in Delhi real estate market. Areas like Panchsheel Park, New Friends Colony and Maharani Bagh that hardly witnessed any transactions in past years have started recording transactions with reduced circle rates in the city. There has been a higher value of the transaction in the city after the announcement of the rebate on the circle rate in Delhi, and the phase is expected to continue for more period, a reason why the government is thinking of extending the rebate on the circle rate in Delhi. In the southern part of the city, Lutyens’ Bungalow Zone registered the highest number of transactions during the rebate period as the urban rich investors showed keen interest in buying the properties where demand outruns supply.
Factors to remember while calculating circle rates in Delhi
- To calculate the circle rate in Delhi, you need to follow simple procedures.
- The circle rate in Delhi varies as per the property type. The unit rate for residential property is much lower than commercial space in the same region.
- Before you calculate the circle rate, you should consider the type of property, whether it is a residential apartment, individual building, or land.
- Choose the property location
Valuate the property as the circle rates provided
Property value = built-up area (in square meters) X locality’s circle rate in Delhi (in Rs per sq meter).
You should use the age multiplier to get the property valuation and set the circle rates accordingly. Making it further easy to calculate the circle rates, the areas of Delhi are categorized between A to H, and you should also check on multiplying factors and the age of the property to assess the right value as per Delhi circle rates notification 2020.
Multiplying factors for a different types of structures
| structure | Multiplying Factor |
| Pucca | 1 |
| Semi-Pucca | 0.75 |
| Kaccha | 0.5 |
Age factor for calculating circle prices
| Factor | Pre 1960 | 1960-69 | 1970-79 | 1980-89 | 1990-2000 | 2000 Onwards |
| Rate | 0.5 | 0.6 | 0.7 | 0.8 | 0.9 | 1 |
Conclusion
The Delhi government has announced a rebate in Delhi circle rates notification 2020. The rebate of 20% on the circle rates is adding great benefit to the relators. Though the government has extended the period of the rebate, it may soon decide to close it in the wake of the reduced COVID effect. You should grab the opportunity of discounted prices now to make the most of it.
Check the following for more info:
DLC Rate in Jaipur 2022
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