Patna, The Bihar government is set to implement a sharp upward revision of circle rates – the minimum valuation at which properties must be registered – potentially tripling the cost of land registration in several areas from as early as January 2025, according to senior officials in the state’s Registration, Excise and Prohibition Department.
The overhaul of the Market Value Rate (MVR), last revised in 2013, is aimed at aligning official valuations more closely with prevailing market prices and boosting state revenue. Sources within the department indicate that in high-transaction urban zones, particularly within the Patna Municipal Corporation’s 75 wards, registration fees and stamp duty could rise by up to 300 per cent.
“The gap between existing circle rates and actual market rates has become unsustainable,” a senior official at the district registration office told the Financial Times. “Property values in many locations have multiplied several times over the past decade while government rates remained frozen.”
The revision exercise, now in its final stages across municipal councils and rural areas of Patna district, is being conducted ward-wise and road-wise. Four key parameters are guiding the recalibration:
– Alignment with current open-market transaction values
– Prioritisation of wards exhibiting the widest disparity between existing MVR and real prices
– Reclassification of land categories in line with 2017 guidelines
– Creation of a separate category for industrial zones
The steepest increases are expected in prime municipal corporation areas where the bulk of property transactions occur. Officials say the higher rates will generate significantly greater stamp-duty revenue for the cash-strapped state exchequer.
While no official notification has been issued yet, departmental sources suggest the new rates could take effect in January or February 2026. Daily valuation reports are being submitted to the state headquarters for final approval.
The move comes at a time when Bihar is seeking to widen its tax base following the recent assembly elections and formation of a new NDA government. Real-estate developers and prospective buyers have already begun factoring in the higher transaction costs, which are likely to dampen sentiment in an otherwise recovering property market.
The department has also indicated that the number of valuation “mauzas” (revenue villages or localities) will increase substantially once the revision is complete, allowing for more granular and location-specific rates.
Investors and homebuyers in Bihar’s urban centres, particularly Patna, are bracing for one of the sharpest single increases in property registration costs in recent state history.
