December 1, 2024 |
Starting Today, Gurgaon to See 10-30% Hike in Circle Rates
Gurgaon is set to see a 10% to 30% hike in circle rates that will come into effect from December 1 and remain in place till March 31, 2025.
On the Golf Course Road, the circle rate — the minimum price set by the government at which a real estate property can be sold — will go up by 30%, especially in luxury residential projects such as DLF Aralias, DLF Magnolias, and DLF Camellias. While the minimum price set by the government for these properties was Rs 27,500 per sqft in 2023-24, the rate will increase to Rs 35,750 per sq ft from Sunday.
Other upscale residential properties, such as Laburnum, La Lagune, and The Palm Springs will also see a 30% hike in circle rate.
In Farrukhnagar, while agriculture, residential, and commercial properties will see the circle rate increasing by 10% to 20%, residential properties on Sohna Road will see a jump of 10% to 15%.
A realtor in Gurgaon, V M K Singh, said in residential areas such as Suncity — which will see a 30% increase in circle rate — the gap between market price (actual price at which a property is sold) and circle rate is significantly wide. “The market rate is Rs 3.5 lakh per sq yard, but the circle rate is over Rs 1.3 lakh sq yard in the case of residential plots. In the case of apartments, the circle rate is Rs 12,870 per sq ft while the market rate is Rs 20,000 per sqft. So, the increase of 30% in circle rate will make little difference,” he said.
The circle rates for commercial properties on Sohna Road and Golf Course Extension Road will see an increase between 9% and 15%. In Manesar tehsil, on the Dwarka Expressway, the hike in circle rates in both residential and commercial properties from last year will be between 10% and 20%.
While the circle rate is the minimum price set by the government and is legally binding, the market rate can fluctuate. Registration fees and stamp duty to be paid while buying a property will be based on the circle rate.
According to Singh, as the demand remains high and supply low, the market price skyrockets. “Both primary (new properties) and secondary (resale properties) markets are in high demand. While investors are looking for properties and projects in the primary market, individuals are looking for the same in the secondary market,” he said.
Last year, while it was initially proposed that circle rates would be hiked by 80% in Gurgaon, when it actually came into effect, it was only 30%, Singh added.
Deputy Commissioner Ajay Kumar, who announced the new rates on Friday, said the new collector rates — also called circle rates — being implemented for residential, agricultural, and commercial land in the district have been increased by 10% to 20%, taking into account the market rate prevailing in respective areas.
“At some key areas in the district, the market rate is significantly high. In such cases, collector rates have been increased by up to 30%. The collector rate plays a critical role in land transactions,” he added.
Ritu Bhariok, a lawyer and vice-president of the Federation of Apartment Owners Association, said that for buyers, a 30% hike in circle rate is a huge jump. “The current prices only are too high… The seller will keep demanding more but the government needs to see if it suits the buyer’s pocket, too.”
Bhariok added that the government is keen on raising circle rates at a time when buyers are still waiting for properties promised to be delivered years ago.
Source : Indian Express
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