Kolkata’s first property circle rate hike in seven years

Property buyers in Kolkata and its nearby areas will now have to pay increased registration and stamp duty fees following the recent hike in circle rates by the government. The circle rates have been revised by 15% to 90%, effective last Wednesday.

Circle rate in real estate means the minimum price for which a property can be sold to a purchaser. It varies from place to place and is set by the government. The revised circle rate for Kolkata has come in for the first time in seven years. An official mentioned that this revision aims to address the variance between circle and market rates in the city. However, developers are not in favour of this decision and indicate that this may suppress demand. For instance, the circle rate in BT Road, Baranagar, has nearly doubled from INR 4,708/sq. ft. to INR 8,850/sq. ft. It has many ongoing high-rise projects, which may be affected by this.

For purchasers, the increased registration cost and stamp duty will be difficult to tackle. In Kolkata and its adjacent areas, 6% is the stamp duty for units priced under INR 1 crore and 7% for units exceeding the INR 1 crore price tag. Most 3-bedroom units and even some 2-bedroom units in Kolkata will cost over INR 1 crore due to the revised circle rates.

Source: Economic Times