GURUGRAM: Property prices in the city are set to rise sharply as the district administration has proposed increasing circle rates in the range of 8-77% in residential areas and up to 145% for agricultural land.
Circle rate is the minimum cost below which land or property cannot be sold. Unlike market rates, which depend on demand and supply, circle rates are legally binding.
The proposed increase in upscale areas like DLF I-V, South City, Suncity, Sushant Lok and Golf Course Road is 10-20%. For flats in DLF Aralias, The Magnolias and Camellias along Golf Course Road – where condominiums are sold upwards of Rs 100 crore – the planned hike is 10%. This translates to Rs 39,325 per sqft, from the existing Rs 35,750/sqft.
A realtor who deals in properties near Golf Course Road, Yash Handa, said on Wednesday that the circle rates of flats in premium housing societies were still not at par with market rates.
“Circle rates should be increased as per market increase. While group housing societies like Aralias, Magnolias and Camellias range above Rs 55,000, their circle rates are 30% to 60% lower. Even at The Crest luxury apartments, the circle rate of Rs 18,866 per sqft after revision is a lot less than Rs 50,000/sqft market rate,” Handa said.
The district administration has proposed steeper hikes – up to 62% — for properties in new sectors along the Dwarka Expressway. Circle rates of residential plots here could go up from Rs 40,000 per square yard to Rs 65,000 per square yard.
The maximum hike for residential plots has been proposed in Gurgaon Gaon, which could see costs go up from Rs 25,300 per square yard to Rs 45,000 per square yard, an increase of 77%.
Agricultural land may see the steepest hike. Circle rate in Bajghera has been proposed to go up 145%, from Rs 2 crore per acre to Rs 5 crore per acre, and in Sirhaul, by 108%, from Rs 2.39 crore per acre to Rs 5 crore per acre. The latest proposal, for which people can file objections by July 31, needs to be approved by the state govt. If given the nod, new rates could come into effect in around a month.
The district administration’s move comes after the Haryana govt in March this year rejected the revenue department’s attempt to increase circle rates in Gurgaon. Realtors had said at the time that the govt’s decision to keep circle rates stable was supposed to “boost buyer confidence” and promote broader participation” by homebuyers.
Circle rates were last increased in Dec 2024 by 10-30%.
Ankit Kansal, managing director of 360 Realtors, said increasing rates was not “very prudent or judicious”, considering property prices in the city were already high and out of reach for most buyers.
“Authorities should relook into the issue. The decision to revise circle rates by around 10-77% can result in a further increase in market rates. Already, property prices are soaring. Many parts of Gurgaon have become out of reach for middle-income buyers. An average 2BHK in the city starts at Rs 2-3 crore. Any further hike will lead to spiraling of costs,” said Kansal.
Nitin Mishra, an IT professional in the city, echoed a similar view. “Continuous rise in property rates will make Gurgaon unaffordable and it will also impact the industry and overall economy of the city,” he said.
Mohit Gawri, vice-president (sales) at real estate consultancy RISE Infraventures, said aligning circle rates with market values was a necessary step to ensure transparency, but this sharp hike may be too aggressive.
