Jun 13, 2023

What Is Circle Rates in Mumbai?

by Godrej Properties Limited

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Circle Rates or Ready Reckoner Rates in Mumbai is the minimum rate notified by the government for selling or purchasing a property. The Stamps and Registration Department of Mumbai are responsible for notifying the ready reckoner rate in Mumbai. The circle rates in Mumbai depend on two factors, namely the current market value of an area, and the amenities and facilities available there. Below is an overview of circle rates and how they affect property transactions in Mumbai.

Impact of Circle Rates on Mumbai Real Estate

Circle rates affect three main aspects of the realty sector. These are:

  1. Property Valuations: Knowing the circle rate applicable to the suburb or town you are planning to purchase a property in, helps you understand the right value of the property you buy.
  2. Property Development: If the circle rates in an area are high, developers will struggle to offer affordable homes. Similarly, if the circle rate of an area is low, there is greater demand resulting in higher property development.
  3. Registration Fee: The stamp duty and registration charges you need to pay after purchasing a property are also determined by the circle rate of an area.
  4. Revenue: Governments earn important revenue from the stamp duty and registration charges collections which are utilised to improve the city’s infrastructure and amenities.

Calculation of Stamp Duty Based on Circle Rate

Below is a simple way to calculate the stamp duty payable based on circle rates:

For our example, let’s assume you are buying a 100 sq. mt. property in Matunga such as Godrej Five Garden, a residential landmark with luxurious amenities.

Circle Rate of Matunga = Rs.2,00,000 per sq. mt.

Thus, Circle Rate for the property = Rs. 2 Crore approx.

Payable Stamp duty is 6% of 2 Crore = Rs. 12 Lakh.

Features of Mumbai Circle Rates

Here are some salient features of circle rates in Mumbai:

  • Circle rates can be considered a government benchmark for property valuation rather than the actual market value.
  • Different circle rates are applicable for flats/apartments and offices/shops within a specific area.
  • Properties above the 4th floor are charged a premium on the circle rate.
  • Parking spaces are charged a percentage of the circle rate depending on whether they are open or stilt/covered parking spaces.

In conclusion, circle rates or ready reckoner Mumbai rates are benchmark rates that enable you to assess your property’s value. These rates differ depending on the area and its location, amenities, etc. 
 

Frequently Asked Questions

1.Are there any changes in the ready reckoner rate in Mumbai in 2023?

Ans: Ready reckoner rates were last updated in March 2022 in Mumbai. After that, there have been no changes in the rates.

2.Where can I check Mumbai’s Circle Rates?

Ans: Visit the website of the Department of Registration and Stamps to check the rates. Alternatively, you can ask for the Annual Statement Rates (ASR) at the sub-registrar’s office.

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