Gurugram's circle rates to rise by 10-30% from December 2024
Real Estate

Gurugram's circle rates to rise by 10-30% from December 2024

Circle rates for registering properties are set to increase in a range of 10-30%, a development that could drive up housing prices in the city, which is already among India's costliest real estate markets.

The new circle rates, district administration officials said, will come into effect from Dec 1 and will be applicable at least till Mar 31, 2025. The decision to hike circle rate was taken at a meeting of deputy commissioner Ajay Kumar with sub-divisional officers and revenue department officials on Friday.

Officials said most areas of the city will see circle rates hiked by 10% to 20%. But the city's most sought-after areas near Golf Course Road, Southern Peripheral Expressway and Dwarka Expressway will see hikes up to 30%. DC Ajay Kumar said the range was decided based on market value of properties within specific areas.

"There are some key areas in the district where the market value is significantly high. This is why an increase of up to 30% in collector rate was decided for those locations," he said. Kumar explained that changes in collector rates, or circle rates, are recommended by a district-level committee that carries out market research before giving its advice. New rates come into effect after the state govt gives its final approval.

Officials said they have received approval from the govt, but a detailed order on the exact hike in circle rates is awaited. Realtors said property prices in Gurgaon are only expected to go up."Despite very high property prices, Gurgaon's real estate sector leads not just in NCR, but it's also among the top performers in the country. Therefore, an increase in circle rate will bring it on par with market rate," said Mohit Kalia, vice-president (sales), Raheja Developers.

Sanjeev Arora, director of 360 Realtors, said the impact of circle rate on property prices will be limited. "In most of the major micro-markets of Gurgaon, such as Golf Course Road, Golf Course Extension Road, SPR and MG Road, property prices are already much higher than the existing circle rates. In other emerging areas also, such as Sohna, New Gurgaon and Dwarka Expressway, property prices are higher. That's why we don't foresee any major jump," Arora said. He said prices will continue to increase in the city due to high demand and limited supplies. "People across age groups and profiles take homeownership seriously. The market will continue to gain steam," he added.

Those looking to buy houses in the city said property rates were already over-the-top in Gurgaon, and a consistent increase would make it completely out of reach for the middle class.

"Property prices are in several crores, and it keeps on increasing. An Increase in circle rate will further increase prices and the dream of owning a house in Gurgaon will become a distant dream for common people," said Kamlesh Bist, a resident of Sector 84, who is looking for a new house to purchase.

Circle rates for registering properties are set to increase in a range of 10-30%, a development that could drive up housing prices in the city, which is already among India's costliest real estate markets. The new circle rates, district administration officials said, will come into effect from Dec 1 and will be applicable at least till Mar 31, 2025. The decision to hike circle rate was taken at a meeting of deputy commissioner Ajay Kumar with sub-divisional officers and revenue department officials on Friday. Officials said most areas of the city will see circle rates hiked by 10% to 20%. But the city's most sought-after areas near Golf Course Road, Southern Peripheral Expressway and Dwarka Expressway will see hikes up to 30%. DC Ajay Kumar said the range was decided based on market value of properties within specific areas. There are some key areas in the district where the market value is significantly high. This is why an increase of up to 30% in collector rate was decided for those locations, he said. Kumar explained that changes in collector rates, or circle rates, are recommended by a district-level committee that carries out market research before giving its advice. New rates come into effect after the state govt gives its final approval. Officials said they have received approval from the govt, but a detailed order on the exact hike in circle rates is awaited. Realtors said property prices in Gurgaon are only expected to go up.Despite very high property prices, Gurgaon's real estate sector leads not just in NCR, but it's also among the top performers in the country. Therefore, an increase in circle rate will bring it on par with market rate, said Mohit Kalia, vice-president (sales), Raheja Developers. Sanjeev Arora, director of 360 Realtors, said the impact of circle rate on property prices will be limited. In most of the major micro-markets of Gurgaon, such as Golf Course Road, Golf Course Extension Road, SPR and MG Road, property prices are already much higher than the existing circle rates. In other emerging areas also, such as Sohna, New Gurgaon and Dwarka Expressway, property prices are higher. That's why we don't foresee any major jump, Arora said. He said prices will continue to increase in the city due to high demand and limited supplies. People across age groups and profiles take homeownership seriously. The market will continue to gain steam, he added. Those looking to buy houses in the city said property rates were already over-the-top in Gurgaon, and a consistent increase would make it completely out of reach for the middle class. Property prices are in several crores, and it keeps on increasing. An Increase in circle rate will further increase prices and the dream of owning a house in Gurgaon will become a distant dream for common people, said Kamlesh Bist, a resident of Sector 84, who is looking for a new house to purchase.

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