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 on Friday, 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%. AdvtDC 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. 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.
As per officials, 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. 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,” say developers.
