new delhi home prices in delhi are expected to rise sharply for the second time this year after the delhi cabinet gave its nod to increase circle rates in the city by up to 250 in february this year circle rates were increased by over 100 circle rate is the minimum rate at which properties have to be registered with the government the growth of the real estate market and instances of under valuation of properties necessitated the notification of the minimum rates said delhis chief minister sheila dikshit the impact of higher circle rates will be felt on property prices prices will rise because of the sentimental impact and will now be more reflective of market reality said prashant kaura director genreal property advisers but the move may also reduce the black money component that is emblematic of real estate transactions in the city as circle rates in most locations are much lower than the actual market price of a property increased prices could further slow down property demand the valuation of properties is already high this is expected to further reduce property deals in the city says sunil kapur owner of delhibased kk real estate the circle rates were notified for the first time in delhi in july 2007 and it was decided to revise these rates every two years the circle rates are charged on the basis of the categories prescribed by the mcd for calculation of property tax under unit area method the rates in a category has been increased by 250 b c d category by 100 e category by 25 f category by 15 and in case of g h categories just by 10 the circle rates for a category will go up from 86000 to 215000 per sq metre b category from 68200 to rs 136400 per sq metre c category from 54600 to 109200 per sq metre d category from 43600 to 87200 per sq metre e category from 36800 to 47840 per sq metre f category from 32200 to 38640 per sq metre g category from 27400 to 31510 per sq metre and h category from 13800 to 15870 per sq metre however the enhanced circle rates will continue to remain less than the prevailing market rates in delhi as well as in the satellite towns of gurgaon and noida