By Arun Pratap Singh
Dehradun, 5 Feb: The state government is gearing up to revise circle rates of land, with a decision likely to be made this month. The finance department has already prepared a proposal, and an average increase of 20 to 25 percent in circle rates has been proposed and is expected to be approved. The increase is anticipated to be more significant in rapidly developing urban areas, particularly in major cities transforming into new townships.
Traditionally, the finance department revises circle rates every January. However, the process was delayed this year due to the urban body elections. Despite this, the finance department had proactively initiated discussions and conducted two to three rounds of meetings with district magistrates to finalise the proposals.
Finance Secretary Dilip Jawalkar today confirmed that the proposals in this regard have been prepared and are awaiting approval. With three-tier panchayat elections also upcoming soon, the government is expected to finalise the new rates before these elections take place. Sources also claimed that the proposal could be tabled in the upcoming cabinet meeting.
It may be recalled that, earlier, the governments used to keep the circle rates significantly lower than the market prices but now in certain places, the circle rates are already higher than the market price of the land, for example in certain old colonies in Dehradun which are strategically located but have narrow lanes and bylanes. As a result, owners find it difficult to get good price for their properties in such areas. On the other hand, infrastructure projects such as the Rishikesh-Karnaprayag rail project in Garhwal are likely to drive up land prices in surrounding areas. Similarly, land prices in majority of the areas in Dehradun, Haridwar, and Udham Singh Nagar districts, especially in suburban areas are expected to witness a significant surge following the revision in the circle rates.
The impending revision in circle rates is being closely watched by property developers, investors, and homebuyers, as it will have a direct impact on real estate pricing and transactions across the state.
