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How to Calculate Property Circle Rates in Delhi & Category Wise Rates List
A circle rate is a minimum value below which you cannot purchase or sell a real estate property. This rate determines the property’s market value. The Delhi government reduced the circle rates for land and other immovable assets by 20%.
This further reduced the stamp duty by 1%. This is a viable opportunity for homebuyers as reduced stamp duty means affordable residential property. If you plan to purchase a property in Delhi, read this article to find out the current circle rates in Delhi and other crucial details.
Correct knowledge about the rates will help you to calculate the property price at the outset.
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What are the Property Circle Rates in Delhi?
The Delhi Government revises the circle rates depending on the area development, demand and supply of land, etc. Based on the Delhi circle rates notification in 2021, here are the current applicable rates mentioned below -
Category-wise Circle Rates for Flats in Delhi
Go through this table to know the applicable circle rates for flats available across the city:
Area |
Private Builder Flats | DDA Society Flats | Multiplying Factors for Private Colonies |
| Multi-storey flats | ₹1.1 lakh | ₹ 87,840 | 1.25 |
| More than 100 square metres | ₹ 95,250 | ₹ 76,200 | 1.25 |
| 50 to 100 square metres | ₹ 79,488 | ₹ 66,240 | 1.2 |
| 30 to 50 square metres | ₹ 62,652 | ₹ 54,480 | 1.15 |
| Up to 30 square metres | ₹ 55,440 | ₹ 50,400 | 1.1 |
Category-wise Circle Rates for Commercial and Residential Plots in New Delhi
Go through this table to know the applicable circle rates for commercial and residential plots available across the city:
|
Land cost (per sq. metre) |
Construction Cost: Commercial (per sq. metre) |
Construction Cost: Residential (per sq. metre) |
|
₹7.74 lakhs |
₹25200 |
₹21960 |
|
₹2.46 lakhs |
₹19920 |
₹17400 |
|
₹1.6 lakhs |
₹15960 |
₹13920 |
|
₹1.28 lakhs |
₹12840 |
₹11160 |
Category-wise Circle Rates for Agricultural Land in New Delhi
Take a look at the table mentioned below showcasing the circle rates for agricultural land in Delhi:
District |
Urbanised villages (in ₹ crore per acre) | Rural villages (in ₹ crore per acre) | Green belt villages (in ₹ crore per acre) |
| New Delhi | 5 | 5 | 5 |
| North | 3 | 3 | 3 |
| South | 5 | 5 | 5 |
| East | 2.3 | 2.3 | NA |
| West | 3 | 3 | 3 |
| Central | 2.5 | 2.5 | NA |
| North-west | 3 | 3 | 3 |
| South-west | 4 | 3 | 3 |
| South-east | 4 | 2.5 | NA |
| North-east | 2.3 | 2.3 | NA |
| Shahdara | 2.3 | 2.3 | 2 |
Category-wise Circle Rates Based on Property-Age in New Delhi
You can calculate circle rates based on the age factor of a property. After application of the age multiplier, the circle rates are as follows:
|
Age of the Property |
Circle Rate in Delhi |
|
Before 1960 |
0.50% |
|
1960-1969 |
0.60% |
|
1970-1979 |
0.70% |
|
1980-1989 |
0.80% |
|
1990-2000 |
0.90% |
|
2000-Present |
1% |
How to Calculate Circle Rates in Delhi For Different Property Types?
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Consider the property type and then proceed to calculation. Read the instruction mentioned in the table below to compute circle rates in Delhi -
|
Property Type |
Calculation Procedure |
|
DDA, society and private builder flats |
Multiply the construction cost with the area in square metres. Then, multiply the result with the appropriate age factor. |
|
Individual plot |
Multiply the plot in square metres with the applicable circle rates in Delhi. |
|
Multi-storey flats |
Multiply the flat area with applicable circle rates for multi-storeyed flats |
|
House construction on plots |
Multiply the land plot with applicable circle rates of the respective locality. Or multiply the construction cost with the area of a house. Then, multiply the result with the relevant age factor. |
How to Calculate Property Value Using Circle Rates in Delhi?
Proceed with property valuation using property circle rate by considering the following:
- Property type
- Construction age
- Floor rise
- Type of property
- Property locality
Now, calculate property value using circle rates use this following formula -
Property value = Area (in square metres) x circle rate for the locality (in ₹ /square metre).
How to Use a Circle Rate Calculator in Delhi?
You can use an online circle rate calculator to save time and energy. Take a look at the complete procedure -
- Step 1: Visit the official website of the Delhi Online Registration Information System.
- Step 2: Select relevant data such as sub-registrar, locality and other essential details.
- Step 3: Based on your type of deed, you need to enter details accordingly to get an accurate stamp duty and registration fee.
Top 5 Factors Affecting Circle Rates in Delhi
The circle rates are dependent on 5 factors -
- Availability of Amenities - Property with amenities like swimming pools, play area etc., attracts higher circle rates in Delhi.
- Locality’s Market Value – Locality with a higher market value has a higher circle rate and vice versa.
- Category of an Area – The category of areas in Delhi ranges from A to H. The area under A is the most expensive and attracts higher circle rates. At the same time, places under category H are of the lowest value and qualify for a lower circle rate.
- Property Usage – A circle rate for the property used for commercial purposes is higher. Property for residential usage has a lower circle rate.
- Age – A circle rate varies with the property’s age. Old properties have lower circle rates compared to new properties in Delhi.
What Is the Impact of Circle Rates on Taxation in Delhi?
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According to Section 56 (2) (x) of the IT Act, both buyer and seller are liable to pay additional capital gains tax if the agreement value is higher than circle rates.
Recently, the government determined that individuals do not have to bear the brunt of this additional tax liability. It increased the gap between circle rate and agreement value. Initially, it was 10% and currently, it doubled to 20% for new houses (residential) worth up to ₹2 crores.
This means that real estate developers can now sell a property at 20% lower than the applicable circle rate without incurring additional tax expenses. A real estate developer can transfer this benefit to new home buyers by offering them discounts. This reduces the cost of purchasing a home.
To understand it, let’s take an example -
|
Factors |
10% Differential Cap between Circle and Market Value |
20% Differential Cap between Circle and Market Value |
|
Circle Rate/Ready Reckoner Rate |
₹1,00,00,000 |
₹1,00,00,000 |
|
Agreement value |
₹90,00,000 |
80,00,000 |
|
Savings |
10,00,000 |
20,00,000 |
As per the example mentioned above, homebuyers can maximise their total savings with this new development.
Experts suggest extending the circle rates in Delhi to benefit both the estate developers and homebuyers. According to the latest development, the Delhi government is also planning to do the same. If it does, this will provide significant financial relief amid the current economic slowdown.
Reduced circle rates are also expected to boost the state government revenue. Hence, it is viable for real estate developers, homebuyers and the government as well.