The real estate market in West Bengal and especially in the dynamic corridors of Kolkata has witnessed a major surge of demand, influenced by governmental policies and others. Considering these factors, the West Bengal Government has made the decision to adjust a fundamental parameter like the circle rate, and it has its ripple effect on every segment of society. The recent decision of the West Bengal government to hike the property circle rate across the different municipalities marks a significant shift, and this particular move has its profound, immediate and long-term consequences on buyers and sellers of this state. This blog of Srijan Realty intends to explore the idea of West Bengal circle rate hike and discuss the broader market implications for both homebuyers and investors.
What is the property circle rate, and why does it matter?
Although the news of the property circle rate hike in West Bengal has created buzz among the real estate agents, buyers and sellers, the idea of the circle rate is still not clear to all. The circle rate stands for the minimum value or amount at which any property transfer can be officially registered in a specific area. Generally, a state’s revenue department determines it and decides the amount. When the government increases the Circle Rate, it automatically raises the minimum valuation of properties. The reason is simple, as it leads directly to higher mandatory payments for both stamp duty and registration fees. It means that the initial cost of ownership acquisition instantly increases for the buyer.
Investor and market implications
After a significant hike in property circle rates in West Bengal, the investors will be able to reap long-term benefits. A higher official valuation in reality confirms that the area is recognised by the West Bengal government, and owing to that, the investors can expect positive returns in future. Even the buyers who are investing their hard-earned money in buying properties will be able to get huge value out of them in future. West Bengal circle rate hike is considered a double-edged sword, as on one hand, it undeniably raises the immediate financial threshold. On the contrary, it is a necessary fiscal measure for formalising the growth of the real estate sector as a whole. In the upcoming days, this decision of the government will influence the infrastructural development and bring a greater level of transparency.
Why Does the Government Impose The Circle Rate Hike?
The primary intention of the Western Government is to reduce the disparity between the actual market value and the official exchange rate. If the official circle rate is found to be too low, it may result in the circulation of black money. On the other hand, by increasing the rate, the government has made attempts to bring more of the transaction value into the formal, taxable economy. As the registration fees and stamp duty are two major sources of revenue for the state and a hike in them via the circle rate helps the government to channel the money into public infrastructure development.
FAQs
- How does the Circle Rate hike directly increase my cost of buying property?
The hike in the circle rate means a hike in the stamp duty and registration fees. Here is why, in case of the circle rate increase, you will have to pay extra stamp duty and registration fees while buying a property.
- Where can I find the current property circle rate of my chosen area?
To get the details of the property circle rate, visit the website of wbregistration.gov.in, and here you need to insert details like police station, locality name and others.
- What is the circle rate?
The circle rate stands for the minimum value per square unit fixed by the state government for a particular area.
Closing Thoughts
The circle rate hike in West Bengal has its association with the property value and infrastructural demand. For the property buyers in Kolkata and all over West Bengal, this measure is going to prove beneficial and has long-term benefits. To get more insights on real estate, visit the official website of Srijan Realty, the best real estate company in Kolkata.
