Real Estate

Average market prices of flats in major cities 6-75 per cent higher than circle rates

PTI New Delhi | Updated on June 15, 2020 Published on June 15, 2020

Representative image   -  BLOOMBERG

Circle rates are the minimum values set by a State government below which a property cannot be registered

The average housing prices quoted by developers across major cities are higher by 6-75 per cent than the government’s circle rates, the value at which stamp duties are paid and properties registered, according to real estate consultant Anarock.

The research data comes at a time when ministers and some corporates have suggested developers, especially those who have high bank debt, to reduce their prices and clear unsold units.

Ready reckoner rates - also known as circle rates or guidance values - are the minimum values set by a State government below which a property cannot be registered.

Each area within a city has its own RR rate on which stamp duty is calculated.

“In a significant trend seen in the Indian housing sector over the last five years, the latest data points towards a reduced difference between the ready reckoner (RR) rates and the actual market prices in the primary (sale by developer) segment in the top cities,” Anarock said in a statement.

From a more than 100 per cent difference between the two rates in certain areas in Mumbai, Pune, Gurugram, etc in 2015, some localities presently show a mere 6 per cent variation, it added.

In Mumbai, average market prices in Lower Parel are 6 per cent higher at Rs 34,660 per sq ft compared with the RR rate of Rs 32,609 per sq ft. In Worli, the market value is Rs 38,560 per sq ft while the RR rate is Rs 35,350 per sq ft.

Jogeshwari East commands a market price of Rs 17,279 per sq ft while the RR rate is Rs 15,143 per sq ft, the data showed.

In Dadar, the average market prices are 58 per cent higher at Rs 32,600 per sq ft than the RR rate of Rs 13,624 per sq ft. At Tardeo also, the prevailing market rate is Rs 56,659 per sq ft while the RR rate is Rs 23,597 per sq ft.

According to the data for Bengaluru, the market price at Rajajinagar is Rs 13,300 per sq ft as against the circle rate of Rs 9,012 per sq ft. At Indiranagar, the market rate is Rs 11,500 per sq ft while the RR rate is Rs 10,312 per sq ft.

In Gurugram, the market price at Dwarka Expressway stood at Rs 5,340 per sq ft while the circle rate is Rs 4,133 per sq ft. At Sohna Road, the market rate is Rs 6,710 per sq ft, up 35 per cent from the circle rate of Rs 4,969 per sq ft. Golf Course Road commands an average market price of Rs 13,150 per sq ft while the circle rate is Rs 7,530 per sq ft.

In Noida, the market price on the Expressway is Rs 5,075 per sq ft while the circle rate is Rs 4,366 per sq ft. At central Noida, the market rate is Rs 4,920 per sq ft as against the circle rate of Rs 3,685 per sq ft. At Sector-150 Noida where multiple projects have been launched, the market rate is Rs 5,100 per sq ft while the circle rate is Rs 3,716 per sq ft.

Similarly in Pune, the average RR rate in Balewadi is Rs 6,359 per sq ft while the market value stands at Rs 6,725 per sq ft. At Dhanori, the RR rate is around Rs 4,666 per sq ft as against an average market price of Rs 4,950 per sq ft.

At Erandwane, the current average RR rate is Rs 10,800 per sq. ft. while average market value is Rs 14,600 per sq ft.

The average market prices at Baner and Kharadi in Pune are higher by 7 per cent and 10 percent respectively than the circle rates in these localities.

Published on June 15, 2020
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