Circle Rate Hike Proposed In Gurgaon For The Third Time This Year
At a time when real estate developers in the city were pinning their hopes on the festive season to revive sales, the Gurgaon administration has proposed to raise circle rates by up to 25 per cent. This could be this year’s third rate hike; rates were earlier hiked in February and April, each time by up to 15 per cent. The revised rates will come into effect on October 19, after the administration takes a final call on objections and suggestion received over the proposed hike.
With that, rates of the property will move further upwards in a city where prices are higher when compared to other areas in the national capital region ─ a prime cause why the premium real estate market in the Millennium City was severely hit by a slowdown in the past. The hike would impact both residential and commercial real estate transactions.
Where will rates rise?
Locations, where rates have been hiked, are along the Delhi-Gurgaon Expressway, the Dwarka Expressway and the Gurgaon-Alwar Highway (Sohna Road) and fall under the municipal limit. In 4 Marla, for instance, circle rate could be hiked from Rs 20,000 per square yard (sqy) to Rs 48,000 per sqy. In Dayanand Colony, rates have been raised from Rs 17,000 per sqy to Rs 24,000 per sqy. In Gandhi Nagar, circle rate has been increased from Rs 17,500 per sqy to Rs 33,000 per sqy.
To check out the complete list of circle rates, click here.
Rates have, however, been left unchanged in the licenced colonies such as DLF Sectors and Palam Vihar.
What are circle rates?
Circle rates are the government-specified rates below which a property cannot be registered at the time of change of ownership.
Stamp duty for a transaction, which is one of the biggest revenue generators for states, is calculated based on the circle rates of a specific locality. To register a property in urban areas of Gurgaon, buyers have to pay eight per cent of the property value as stamp duty. The rate for rural areas currently stands at five per cent.