Circle Rates Increased in Gurugram. Buying Houses Becomes Dearer!

With Gurugram administration’s decision to increase the circle rate, which is hiked two times a year, home buyers can expect to pay more for buying a property. Independent floors in residential colonies and apartments in group housing societies along Sohna Road, MG Road, Delhi-Gurgaon Expressway and Golf Course Road will become dearer. However, large scale changes in areas along Old Delhi-Gurgaon Road, Dwarka Expressway and in colonies on the western side of highway and old city are not proposed as of now.

According to experts, a hike in the circle rate will depress the property market further. Currently, there are more sellers than buyers and a hike in circle rate won’t generate any revenue. In fact, it will further reduce the chances of any property dealings. Circle rate is the minimum value for the sale of an apartment, land, commercial property etc. takes place. The registry of property takes place at this price and the buyer pays stamp duty as per this rate.

As per new directions, the circle rate for the proposed registry of floors on residential plots has increased from INR 5,000 per sq. ft. (psf) to INR 10,000 psf. Citizens and stakeholders were asked by the district administration regarding objections to this inflation. Most developers feel that an increase in the circle rate will hit the real estate market badly. Circle rate for dwarka expressway residential projects in sectors 15, 27, 28, 30, 31-32A, 39, 40, 41, 42, 43, 45, 46, 50, 51, 52, 53, 54, 55, 56, 57 has increased from INR 5,000 to 12,000 psf. For flats in group housing societies and plots in licensed colonies in sectors 58, 59, 60, 61, 62, 63, 63A, circle rate has increased from INR 3,500 to 5,600 psf.

Upscale colonies on Golf Course Road developed by DLF like Magnolia, Camelia ad Aralias, rate has increased from INR 20,000 to 22,000 psf. Ambience island on Delhi-Gurgaon Expressway will witness an increase in circle rate from INR 10,000 to 13,000 psf. Privately developed group housing colonies like Exotica, Palm Springs, Central Park etc. will see a circle rate increase from INR 8,000 to 17,000 psf.

Though rates haven’t changed much across the city, the properties across Sohna Road, MG Road, Golf Course Road will be the worst affected. The fees for stamp duty to be paid to the government will double. Several brokers and developers are planning to protest the proposed hike.