The Gurugram district administration has announced a significant increase in circle rates, effective Dec. 1, potentially making property registrations more expensive.
The revised rates will see a hike of 10% to 30% across various categories of land, including residential, agricultural, and commercial properties, and will remain in force until at least March 31, 2025.
As published by Hindustan Times, luxury residential neighborhoods such as Golf Course Road are set to experience the sharpest increase, with rates rising by 30%. Deputy Commissioner Ajay Kumar, who revealed the changes on Nov. 29, said the new rates align with prevailing market conditions in respective areas.
Circle rates, also known as collector rates in Haryana, are the minimum price at which a property can be sold and are used to calculate taxes on property transfers. These rates serve as a critical revenue source for the state government.
Adjustments in circle rates are common and vary across states. Haryana typically revises these rates twice a year, while other regions, such as Mumbai, see annual changes.
Santhosh Kumar, vice chairman of ANAROCK Group, said the increased rates could raise the cost of property acquisition, impacting buyers’ decisions. “Any rise—whether in circle rates, property prices, or interest rates—affects buyers directly,” he said. “This hike may slow sales in the short term.”
Mohit Jain, managing director of Krisumi Corporation, highlighted the broader economic implications of the real estate market, saying the sector’s performance supports ancillary industries and overall growth.
“While the real estate market has shown resilience, an increase in circle rates could discourage some buyers, potentially slowing momentum,” Jain said. “At this juncture, such a hike may not be ideal, though the long-term effects are expected to be limited.”
Others were more optimistic about the market’s resilience. Pradeep Aggarwal, founder and chairman of Signature Global (India) Ltd., noted that Gurugram’s real estate sector remains strong due to sustained demand, infrastructure development, and rising incomes.
“Prime areas such as Dwarka Expressway and Southern Peripheral Road are likely to maintain high demand, driven by limited supply and steady investor confidence,” Aggarwal said. He emphasized the need for a balanced approach to ensure continued growth.
Circle rate adjustments are essential for aligning property valuations with market trends, ensuring fair taxation, and maintaining transparency in transactions. Officials see the hike as a routine measure to reflect the true value of land and properties in the area.
Despite concerns over potential short-term effects, experts believe Gurugram’s real estate fundamentals—marked by robust infrastructure growth and investor interest—will likely keep the market buoyant, especially in high-demand locations.
This hike marks a critical juncture for Gurugram’s property market, as stakeholders watch closely to assess its broader impact.