Circle rates in Delhi 2022-23

With demand for property loans in Delhi at an all-time high, knowing the circle rate applicable in Delhi is an essential piece of information for any borrower.

What is circle rate?

The government notifies a minimum rate for transactions related to property registration in a specified area, known as the circle rate. It is notified through the Sub Registrar’s or Registrar’s office in Delhi. Stamp value is thus determined as the higher amount between the circle rate notified for a given area in Delhi and the estimated transaction value for the property.

Anyone seeking to avail a loan against property in Delhi has to consider the specified circle rate for the property to be mortgaged and apply for the loan amount accordingly.

Circle Rates in New Delhi 2022

Circle rate in Delhi for residential plots

Residential plots within the administrative area falling under New Delhi Municipal Corporation (NDMC) are divided into categories ranging from A to H.

Here is a table that specifies the circle rate in Delhi for all the categories of residential plots.

Circle rate in Delhi for flats

Similar to the circle rates for residential plots, the Delhi Government separately notifies the rates for flats across the city. They are divided into five categories depending on the area they cover and type.

Circle Rate in Delhi for Agricultural Land

What do circle rates in Delhi depend upon?

Circle rates in Delhi vary in different areas based on factors like:

• The facilities available
• The area’s market value
• Presence of other amenities

Based on these factors, the areas are divided among eight categories from A to H, as mentioned above. While areas with the highest values and high-end amenities fall under category A, it diminishes for subsequent categories, with areas carrying the lowest value falling under category H.

As for flats, the circle rates further differ depending on the builders, namely:

Following are the parameters on which circle rates can differ:

• Flats constructed by private builders
• DDA or society flats

When the lender assesses a property loan application, the valuation during purchase/ sale follows these considerations to determine the valuation of the property to be mortgaged.

How to calculate the circle rate?

Here are steps to calculate the circle rate in Delhi:

• Determine whether the property is used for residential or commercial purposes. The circle rates notified by the Delhi Government are higher for the former and lower for the latter.
• Consider the type of property, whether it is a flat, apartment, independent house or a plot of land. Values of different property types vary even if they fall in the same area.
• Use an ‘age multiplier’ to arrive at property valuation and determine the circle rate accordingly.

What is the age factor for the circle rate in Delhi?

Property valuation to decide the circle rate in Delhi is affected by the age factor depending on the year of construction. The multipliers vary between 0.5 and 1.0 and are applicable for properties built before the year 1960 and after 2000, respectively.

The table given below specifies the age multiplier as per the year of construction.

Stamp duty rate for registering property in Delhi

Based on the circle rate chart notified by the Delhi Government, stamp duty is calculated on higher of the two values, i.e., value assessed, and agreement value declared. The percentage rate of stamp duty, however, varies based on the owner.

Current stamp duty rates in Delhi

The applicable stamp duty rates prevailing in Delhi are as follows.

• For females: 4%
• For joint ownership of males and females: 5%
• For males: 6%

Registry charges for property registration in Delhi

The registration charge is an additional fee levied over and above the stamp duty during property registration. The charge covers the expenses required to meet the running expenses of the registrar’s office.

The applicable registry charges for properties in Delhi stand at 1% of the valuation. A pasting fee of Rs. 100 is also applicable.

How should you calculate the value of the property using the circle rate in Delhi for stamp duty payment?

These are the steps to calculate property value using the circle rate in Delhi. Stamp duty is paid on this valuation during property purchase.

1. Determine the property’s built-up area and other factors like property age, floor area, available amenities, etc
2. Choose the type of property from plots, apartments, flats, etc
3. Next, choose the area/ locality of the property as categorized on the Delhi registrar’s official website
4. Compute the minimum assessment value through the following calculation after considering the applicable circle rate in Delhi

• For independent plot builder floors:
• Multiply the plot area’s proportionate share (in sq. metres) with the area’s applicable circle rate (in Rs./ sq. metre)
• Multiply minimum construction cost (in Rs./ sq. metre) with the built-up area (in sq. metres). Now, multiply the product with the applicable age factor.
• For residential apartments (Including society/ DDA/ builder flats):
• The calculation for flats in 4-storeyed buildings:
  Multiply the flat’s built-up area (in sq. metres) with the flat’s applicable circle rate (in Rs./ sq. metre).
• Calculation of multi-storeyed flats:
  Multiply the flat’s built-up area (in sq. metres) with applicable circle rates for multi-storeyed flats (in Rs./ sq. metre).
• For house constructed on a plot:
• Multiply plot area (in sq. metres) with the applicable circle rate for the land in the respective locality (in Rs./ sq. metre)
• Multiply the house’s built-up area (in sq. metres) with minimum construction cost (in Rs./ sq. metre). Multiply the product with the applicable age factor for the construction.
• For plots:
• Multiply plot area (in sq. metres) with the applicable circle rate for the land in the respective locality (in Rs./ sq. metre)
• Now, look at areas falling under the eight categories for the determination of circle rate in Delhi.

Category-wise classification of areas in Delhi