In the housing sector of India, over the past five years, the latest data points towards a concentrated difference between the actual market prices of the commercial property and the circle rates in the major cities.
In Gurugram, the market price at Expressway of Dwarka stood at about Rs 5,340 per sq ft while the circle rate of the commercial property in Gurgaon is about Rs 4,133 per sq ft. At the Sohna Road, the market rate is about Rs 6,710 per sq ft, up 35 percent from the respective circle rate of Rs 4,969 per sq ft. Golf Course Road tips an average market price of the real estate of about Rs 13,150 per sq ft while the circle rate is about Rs 7,530 per sq ft.
In Noida, the market price on the respective Expressway is about Rs 5,075 per sq ft while the circle rate is about Rs 4,366 per sq ft. At central Noida, the market rate is basically Rs 4,920 per sq ft as against the respective circle rate of Rs 3,685 per sq ft.
Anaraock said its data of research shows the difference between the average market prices of the real estate and circle rates, which was as elevated as 100% in assured localities of Pune, Mumbai, and Gurugram in the year 2015, currently stands at a mere 6 percent difference.
The average market prices of the real estate quoted by the developers around various major Indian cities are about 6 percent to 75 percent higher as compared to the price of the government-prescribed circle rates, the particular value at which the stamp duties are paid and all the properties are properly registered, said the real estate consultant Anarock.
The final report comes in the background of heavy conjecture that all the developers might be forced to reduce their respective prices in view of high bank assessment and unsold inventory and also an economic slowdown because of the two-month nationwide lockdown.
A guidance value, circle rates, or ready reckoned (RR) rates are basically the value set up by the state government under which a commercial property cannot be actually registered. Each area inside a city has its own ready reckoner rate on which the particular stamp duty is collected.
In a major trend that is seen in the sector of Indian housing over the past five years, the new data points towards an abridged distinction between the ready reckoner (RR) rates and the real market prices in the principal (sale by the developer) segment in the top cities, said by Anarock in a statement.
In Mumbai, the average market prices of the commercial property in the Lower Parel are about 6 percent higher at Rs 34,660 per sq ft as compared with the RR(ready reckoner) rate of Rs 32,609 per sq. In Worli, the actual market value is Rs 38,560 per sq ft while the RR(ready reckoner) rate or circle rate is Rs 35,350 per sq ft.
According to the latest data for Bengaluru, the market price of commercial property at Rajajinagar is about Rs 13,300 per sq ft as in opposition to the circle rate of Rs 9,012 per sq ft. At Indiranagar, the market rate is about Rs 11,500 per sq ft while the RR(ready reckoner) rate is Rs 10,312 per sq ft.
Not only this, but the average market prices of the real estate at Kharadi and Baner in Pune also higher by 7 percent and 10 percent correspondingly than the circle rates in these particular localities.