Property prices in Gurugram are going to increase now, as the district administration has raised the circle rates in the Haryana district in the range of 10-30 per cent, effective April 1, 2023. The circle rates in Gurugram, below which property registration with the revenue department cannot take place, were last revised in January 2022 by a similar proportion.
In the latest hike, all tehsils and subtehsils in the district witnessed an increase in circle rates. These tehsils are Gurugram, Farrukh Nagar, Pataudi, Sohna, and Manesar; while sub-tehsils are Kadipur, Hassru, Wazribad and Badshahpur.
The hike in circle rates will now lead to an increase in the prices of houses, offices and agricultural land in Gurugram, Haryana.
While the circle rate is the rate below which a property cannot be transferred to another person, the market rates are higher than that and depend upon the market demand and supply, and facility in the area, connectivity, etc.
The revised circle rates for the entire Gurugram district can be checked on https://gurugram.gov.in/collectorrates/.
What Developers Say
The hike in the circle rates in Gurugram has evoked mixed responses from the developers.
Kunal Rishi, chief operating officer of Paras Buildtech, said, “While the increase in circle rates may catch homebuyers and property investors off guard, the district administration’s decision is justifiable based on the current market conditions. The real estate market in Gurugram has experienced a significant upsurge in sales and property prices over the past year, resulting in a need for higher circle rates.”
He added that these rates represent the minimum prices at which a property is registered with the revenue department during transfer, and the stamp duty collected is a significant revenue source for the state government. Despite the higher taxes that homebuyers and property investors may face, the increase is necessary to maintain a thriving and sustainable real estate market in the long run.
Welcoming the move, Vivek Singhal, CEO of Smartworld Developers, said, “The surge in circle rates in Gurugram is a move in the right direction by the government. The reduction in gap between the market value and circle rate will further boost the primary real estate market and will be a right step towards enhancing transparency and promoting the organised development in the real estate industry.”
Differing from the view, Santosh Agarwal, CFO and executive director of Alpha Corp, said the circle rates are only an indication of the pricing, not the actual value. Increasing circle rates in the current scenario would be impractical.
“Due to the increase in circle rates, the buyers may not invest in any property in the short term and may like to hold off their buying decision for now, which will affect the realty market as a whole. Any decision to raise the circle rate undermines the recovery process and has a detrimental influence on the real estate sector. A higher circle rate correlates to a higher registration cost, which translates to a higher acquisition cost and has an impact on the property’s transactability,” he added.
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