Property gets dearer in Gurugram as circle rates are hiked by up to 30%

Property rates are set to go up in Gurugram as the district administration has hiked the circle rates in the entire district by up to 30%. The order issued by district collector, Gurugram, on April 3 said there has been a 20% hike in rates for residential, agricultural and commercial properties in Gurugram tehsil while the rate has been increased by 15-20% in Badshahpur tehsil.

Likewise, all the tehsils and subtehsils in the district — Sohna, Pataudi, Farrukhnagar, Manesar, Wazirabad , Badshahpur, Qadipur and Harsaru — saw an increase in circle rates ranging from 10% to 30% on the prevalent rates.

The new circle rates will be effective from April 1, the order said.Circle rate is the minimum price at which a property is registered with the revenue department when being transferred. The stamp duty levied on such properties is a major revenue for the state government.

An official of the district administration said circle rate revision is carried out every year and is based on the average rate of property registrations happening in any tehsil. The difference in the market rate and the rate at which registrations are happening are also taken into account, while deciding the new circle rates, he said.Market rate is the rate at which a property transaction takes place and its price is determined by market forces, while circle rates are fixed yearly or twice a year by the district administration.

As per the new rates notified by the government, the circle rates of condominiums on Golf Course Road have been increased and now a homebuyer will have to pay higher taxes. In fact, circle rates have been increased in some of the flats by 2,500 per square foot.The rate of flats in group housing projects in a majority of sectors along Sohna Road had been increased from 5,500 per square foot to 7,100 per square foot.The rates of floors in colonies and licensed colonies of HSVP [Haryana Shahari Vikas Pradhikaran] in Badshahpur tehsil have been increased from 6,500 per square to 7,150 per square foot.

The rate of plots in Bajghera near Palam Vihar has increased from 15,000 square yard to 18,000 per square yard. In upscale Civil Lines, the rate has been increased from 52,800 per square yard to 70,000 per square yard.

Gurugram deputy commissioner Nishant Yadav said, “The rates have been revised by an average 10-30% depending upon the area. These rates have been uploaded on the government and department website and can be accessed with ease.”City based developers and property experts said any increase in circle rates will increase the transaction cost as a buyer will have to pay stamp duty and registration charges as per the revised circle rate.Narender Yadav, president, Gurugram Home Developers Association, said the revision in circle rates should have been kept at 10% and not raised further. “The market has slowed down, the interest rates have hardened and the hike of 30% is too much. The burden of the hike will fall on buyers as transactions costs will rise,” he said.

However, Surinder Singh, managing director, GLS Group, a realty firm, said the market had risen at a decent rate in the last year and increasing circle rates was a reasonable decision. “The sales have happened, prices have increased and the market has the capacity to absorb this increase,” said Singh.