U’khand: Buying property becomes costlier due to new circle rates in State; Details here

The state government had directed all district magistrates to revise the circle rates in their districts in accordance with current market conditions.

Dehradun: The Uttarakhand Government has implemented new circle rates across the state making the purchase and sale of land, flats, and commercial properties more expensive. The circle rates have been increased by 9% to 22%, reports Dynamite News correspondent.

This decision comes at a time when construction activities and land purchases and sales are rapidly increasing in the state. This is considered a major step towards increasing government revenue.

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To Increase Revenue

The state government derives a significant amount of revenue from the circle rate in the form of registry fees and stamp duty. With the implementation of the new rates, registration of houses, shops, plots, and flats will now be charged at a higher price than before.

Finance Secretary Dilip Jawalkar officially confirmed the implementation of the new circle rates, stating that this change was necessary to bring transparency and stability to revenue.

The government has specifically increased the circle rates in areas where major real estate projects have been launched in the past few years, multi-story residential buildings are being constructed, and commercial activity has increased. In these areas, there was a significant difference between the market rate and the circle rate, resulting in revenue loss for the government.

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District-Wise Revision

The state government had directed all district magistrates to revise the circle rates in their districts in accordance with current market conditions. However, serious errors were found in the initial proposals received from several districts, prompting them to submit revised proposals. The government has now issued orders, and districts are implementing these new rates. The Dehradun district administration implemented the new circle rates from October 5th. Other districts will also implement them in a day or two.

Those who want to purchase a plot, house, or shop will now have to pay higher stamp duty and registration fees compared to the old circle rates. Real estate companies will now face increased project costs. Home EMIs and loan amounts may also increase, as loans are based on the property's registration value.