Patna: Buying property in Bihar is set to become significantly more expensive after the state government approved a major revision in the minimum value register (MVR), commonly known as circle rates.
Under the revised rates, land prices in urban areas have been increased by up to 100 per cent, while circle rates in rural areas have been raised by up to 1.6 times. The new rates will come into effect across Bihar from Friday.
The decision was approved by the state’s Prohibition, Excise and Registration Department on Thursday.
Department Secretary Ajay Yadav said the revised rates mark the first major update for urban areas since 2016 and for rural areas since 2013.
As part of the new policy, the government has also introduced a provision for an annual 5 per cent increase in circle rates.
The revision will have a direct impact on property registration costs, as stamp duty has been increased by 1 percentage point to 8 per cent. Buyers will also have to pay a 2 per cent registration fee.
Additionally, properties located within municipal limits will attract an extra 2 per cent tax, which will be transferred directly to the respective urban local bodies.
Prime Patna Locations See Sharpest Increase
The revised rates have pushed government-assessed land values in some of Patna’s most sought-after neighbourhoods, including Rajabazar, Fraser Road and Boring Road, to Rs 2.5 crore per katha.
According to the revised schedule, the circle rate for land along 12 major commercial corridors in Patna has doubled from Rs 40 lakh per decimal to Rs 80 lakh per decimal.
Since one katha is equivalent to 3.125 decimals, the official value of one katha of land in these areas has increased from Rs 1.25 crore to Rs 2.5 crore.
Property Buyers to Bear Higher Costs
The increase in circle rates is expected to raise the cost of land registration, stamp duty and property transactions across the state.
Homebuyers purchasing flats and residential properties will also have to pay higher registration charges.
Real estate experts believe the revised rates could lead to an increase in overall housing costs, particularly in urban centres.
Higher Compensation for Land Acquisition
The state government said the revised rates would benefit landowners whose properties are acquired for infrastructure and development projects.
Compensation for land acquired under state government schemes is projected to increase from Rs 14,897 crore to Rs 18,637 crore.
Similarly, compensation for land acquired under centrally sponsored projects is expected to rise from Rs 24,629 crore to Rs 39,460 crore.
Women to Receive Registration Concessions
To encourage property ownership among women, the government has announced a 5 per cent concession on property registration in cases where land or property is registered in a woman’s name.
The concession includes a 4 per cent rebate on stamp duty and a 1 per cent reduction in registration fees.
Simplified Land Categories
The government has also simplified land classification norms.
Under the revised system, rural areas will now have only seven land categories, while urban areas will have six categories, replacing the earlier, more complex structure.
Officials said the changes are aimed at improving transparency in property valuation and streamlining the registration process across Bihar.
