Gurgaon Circle Rate to Increase by 10-30% from December 2024

Gurugram, one of India’s top real estate hubs, is about to see some big changes that could affect property buyers, sellers, and investors. Starting December 1, 2024, the circle rate in gurgaon is set to increase by 10% to 30%. This move, announced by Deputy Commissioner Ajay Kumar, aims to bring official property values in line with the current market rates in different parts of the city. As a result, property prices—already on the higher side—could rise even more.

What Are Circle Rates and Why Are They Important?

The circle rate Gurgaon is the minimum price set by the government at which properties can be bought and sold in the region. Also known as the collector rate, this rate is used to calculate the stamp duty charges during property transactions. It ensures that the sale price of a property is aligned with the prevailing market rate. Changes in the circle rate in Gurgaon can have a direct impact on the registration cost of properties, which is an essential factor for buyers and sellers in the real estate market.

For a city like Gurugram, which is already known for its steep property prices, these changes in circle rates are significant. By adjusting these rates, the authorities aim to bring the official price closer to the actual market value, especially in high-demand areas.

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Details of the Circle Rate Hike: What’s Changing in Gurgaon?

The updated circle rate in Gurgaon will be implemented from December 1, 2024, and will remain in place at least until March 31, 2025. The increase, ranging from 10% to 30%, will affect residential, commercial, and agricultural properties throughout the district.

As per the district administration, most areas in Gurugram will witness a 10% to 20% increase in circle rates. However, some of the city’s prime locations, like Golf Course Road, Dwarka Expressway, and Southern Peripheral Road, will see hikes of up to 30%. These high-demand areas, known for their elevated property values, are expected to experience the most substantial increases in the circle rate, reflecting their premium market status.

How Will the Circle Rate Increase Affect Gurgaon’s Real Estate Market?

While the new circle rate in Gurgaon will certainly raise the cost of property registration, its impact on the overall property prices in Gurugram may not be as significant as one might think. Many experts suggest that the rise in circle rates will simply bring the registration costs more in line with the prevailing market values.

Mohit Kalia, Vice President of Sales at Raheja Developers, pointed out that the hike in circle rates will align the official property values with what buyers and sellers are already experiencing in the market. Areas such as Golf Course Road, which already feature property prices much higher than the current circle rate Gurgaon, will likely feel minimal impact from this adjustment.

Similarly, Sanjeev Arora, Director at 360 Realtors, mentioned that major micro-markets like Golf Course Extension Road, MG Road, and Southern Peripheral Road are already priced above the current circle rates in Gurgaon. Therefore, while the hike will make registration slightly more expensive, it is unlikely to cause a significant price surge in these areas.

Experts also believe that property prices in Gurugram are expected to keep rising in the long run, driven by strong demand and limited supply. As Pradeep Aggarwal, Founder of Signature Global, pointed out, areas with scarce land, like Dwarka Expressway, will continue to attract steady demand. Even with the increase in circle rates, these locations are likely to maintain strong investor interest thanks to their long-term growth prospects.

Current Circle Rate Gurgaon 2024-25: Key Sectors

The circle rate in Gurgaon is set to rise by 10-30%. While the exact percentage of the hike is yet to be announced, officials have confirmed that the new rates for key sectors in 2024-25 are expected :

Circle Rate Gurgaon: Land Rates in Licensed Colonies for 2024-25

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Circle Rate Gurgaon: HUDA Rates for 2024-25 (By Sector)

Circle Rate Gurgaon 2024-25: Builder Floors and Multi-Story Group Housing

Source: Gurugram Gov 

Proposed Circle Rate Gurgaon for 2024-25

Here are the proposed circle rates for Gurgaon for 2024-25:

How to Check Circle Rate in Gurgaon?

Circle rates in Gurgaon vary by locality, and it's easy to check them online. Follow these simple steps to find the circle rates for any area:

Step 1: Visit the Official District Gurgaon Portal

Go to the official website of the District Gurgaon at https://gurugram.gov.in/.

Step 2: Access the Revenue Section

Once on the site, navigate to the Department's section and select Revenue from the dropdown menu. Scroll down to find the link titled "Collectorate rates".

Step 3: View Circle Rates by Locality

Click on the "Collectrate" link to reach the page where the circle rates for different localities in Gurgaon are listed. From here, you can select your desired locality, and the corresponding circle rate will be displayed.

By following these steps, you can easily access the latest circle rates in Gurgaon.

Circle Rate Gurgaon: How to Calculate Property Value for Stamp Duty

To calculate the stamp duty charge for a property in Gurgaon using the circle rate, follow these formulas based on the type of property:

1. For Apartments or Flats

• Formula: Carpet Area (in sq yd) × Circle Rate (per sq yd)

2. For Builder Floors Constructed on Independent Plots

• Formula: Carpet Area (in sq yd) × Circle Rate (per sq yd)

3. For Plots

• Formula: Plot Area (in sq yd) × Circle Rate (per sq yd)

4. For Builder Floors Constructed on Independent Plots

• Formula: Plot Area (in sq yd) × Circle Rate (per sq yd)

                            Carpet Area (in sq yd) × Minimum Construction Cost per sq yd

These calculations will give you the value of the property based on the circle rate Gurgaon, which is used to calculate the stamp duty for registration.

Affordability Concerns: Impact on Middle-Class Buyers

For many middle-class families, the idea of owning property in Gurugram is already a distant dream due to the skyrocketing property prices. The rise in the circle rate Gurgaon has sparked concerns that it will push property prices even higher, making homeownership more out of reach.

Kamlesh Bist, a resident of Sector 84, expressed his frustration about the ever-increasing property prices. He pointed out that with circle rates climbing, property registration costs will only add to the financial burden of buying a home. This consistent price increase, he argued, will only make owning a house in Gurugram a pipe dream for many people from the middle-income group.

Will the Circle Rate Increase Have a Significant Impact on Property Sales?

The rise in circle rates in Gurgaon may have a short-term effect on property sales, especially for first-time buyers or those who were planning to enter the market. As Santhosh Kumar, Vice Chairman of ANAROCK Group, noted, any increase in costs—whether through interest rates, circle rates, or base property prices—adds to the overall expense of purchasing property, potentially deterring some buyers.

However, experts suggest that the long-term impact of the circle rate Gurgaon increase may not be drastic. Gurugram’s real estate market is buoyed by strong fundamentals such as robust infrastructure development, rising incomes, and high demand for residential and commercial spaces. Despite the rise in registration costs, Gurugram’s real estate market is expected to remain resilient, driven by sustained investor confidence and a growing urban population.

The upcoming circle rate Gurgaon hike is a significant development for the city’s real estate market. While it will make property registration more expensive, especially in high-demand areas, it may not drastically change the market dynamics in the long run. The rise in rates is largely expected to bring official property values more in line with actual market prices, and for many prime locations, this adjustment may be long overdue.

However, for potential buyers, particularly those from the middle class, the hike could make an already expensive market even less accessible. As Gurugram continues to grow as a real estate powerhouse, it will be essential for authorities to balance the need for fiscal growth with the realities of affordability for its residents. Only time will tell how this new change will affect the long-term trajectory of the Gurugram real estate market.

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