What Are the Current Circle Rates in Bangalore?

Current Circle Rate in Bangalore 2023

As mentioned earlier, the Karnataka state government plans to increase the circle rate in Bangalore from October 1, 2023. However, the hike will be based on the area where the property is located. The government issued two drafts to increase the circle rate in rural and urban districts of Bangalore. It will directly impact the stamp duty, registration charges, and property taxes. From now on, the property registration charges will be 5% of the circle rate and 2% of the stamp duty as property tax.

Here is a Bangalore circle rate list according to the property type:

Circle Rates for Multi-storey Apartments in Bangalore

Circle Rates for Agricultural Land in Bangalore

Circle Rates for Non-Agricultural Land in Bangalore

Read Also: What Are the Current Circle Rates in Noida?

Calculation of Circle Rate as per the age of the Property in Bangalore

A property’s age largely impacts its valuation and circle rate in Bangalore. Instead of a fixed rate depending on the property's age, a multiplying factor determines a property's circle rate. Usually, the multiplying factor is lower for an older property and higher for a new one. The more recent the property, the higher the multiplying factor. To calculate the circle rate in Bangalore, you can use the following formula:

Circle Rate = Base Rate + (Factor * Area Adjustment) + (Factor * Zone Adjustment)

Where:

Base Rate: The base rate set by the state government of Uttar Pradesh.

Factor: A multiplier determined based on various factors such as infrastructure, amenities, and demand in the area.

Area Adjustment: An adjustment factor based on the size or area of the property.

Zone Adjustment: An adjustment factor based on Lucknow's specific zone or locality.

How to Calculate the Stamp Duty and Registration Charges in Bangalore?

Stamp duty in Bangalore is 3-5% of the property’s market value, while registration charges range from 1-3% of the market value. The stamp duty for properties falling between Rs 21-45 Lakh is 3%, while properties worth above Rs 45 Lakh have a stamp duty charge of 5%. Moreover, stamp duty for properties in urban areas is 5.6% and 5.65% for properties in rural areas. That means if a property's circle rate is Rs 55 Lakh and the market value is 60 Lakh, the stamp duty will be charged on Rs 60 Lakh, which is the greater value. Instead of calculating the percentage manually, you can use an online calculator to calculate stamp duty and registration charges in Bangalore.

What are the Factors on Which Circle Rates Depend?

• Property Location: The government considers the property location when determining the circle rate. Properties in posh areas have higher circle rates than same-size properties in rural areas. 
• Market Value: A property’s market value is always higher than its circle rate. The government checks a property’s market price before evaluating its circle rate.
• Property Type: Different types of properties have varying circle rates. For instance, the circle rate for commercial properties is higher than for residential houses in Karnataka.
• Amenities: Amenities inside and around the property also affect the Bangalore circle rate. Properties close to schools, hospitals, fitness clubs, parks, gyms, etc., have higher circle rates than properties in remote areas. 
• Usage: A property’s usage and purpose also affect its circle rate. For instance, the circle rate for agricultural land is higher than for multi-storey apartments. 

Uses of Circle Rates in Bangalore

Most importantly, the circle rate in Bangalore helps evaluate the accurate price of a property based on its area, type, usage, etc. Property buyers and sellers can use this rate as a parameter to find their property’s fixed registration prices. Although market rates are higher than the circle rates, buyers still get a perspective of their property’s estimated cost. Moreover, the circle rate generates revenue for the Karnataka government through stamp registration charges and other taxes. The revenue department allocates these funds for the state’s infrastructural development.
Read Also: What Are the Current Circle Rates in Ghaziabad?

Conclusion

Buying a property or taking a Loan Against Property in Bangalore involves factors such as local trends, circle rates, legal checks, financial decisions, and market value. Understanding the importance of circle rate in Bangalore helps make informed decisions and grab the correct value of your property when taking a loan against it. So, conduct thorough research, do the calculations, and ensure legal compliance to get the best deal. With these considerations, you can navigate the financial market of Karnataka confidently and get the best Loan Against Property interest rate from Hero FinCorp.

Frequently Asked Questions

1. Why are circle rates important in Bangalore?

Circle rate in Bangalore is important because it helps determine a property’s market value, based on which you can borrow a Home Loan or a Loan Against Property. It also generates revenue for the government to work for the city’s welfare. 

2. How are circle rates calculated in Bangalore?

You may calculate the Bangalore circle rate based on the property’s age, area, amenities, usage, etc. 

3. How do I know the circle rate for my property in Bangalore?

You can log on to the Department of Stamps & Registration web portal to find your property’s circle rate in Bangalore.  

4. What is the registration rate in Bangalore?

You must pay 1% of the property's value as the registration rate as per the Bangalore circle rate.