Ggm property prices to rise as circle rates increase by 10-30%

GURUGRAM: Property buyers in Gurugram face steep price hikes as the district administration announces a revision in circle rates, effective from December 1, 2024, until March 31, 2025.

This increase, ranging from 10-30 per cent, is expected to drive up property costs in both established and emerging areas of one of India’s priciest real estate markets.

The updated rates were finalised in a meeting led by Deputy Commissioner Ajay Kumar, following extensive discussions with sub-divisional officers and revenue department officials. “Key areas with high market values have warranted a 30 per cent increase in circle rates,” Kumar explained.

He added that the adjustments were based on comprehensive market research conducted by a district-level committee.

Circle rates, also known as collector rates, serve as the government-mandated minimum price for property transactions.

The hike aims to bridge the gap between the current circle rates and actual market values, particularly in premium locations like Golf Course Road, Dwarka Expressway, and Golf Course Extension Road, where market prices already surpass these benchmarks.

The newly proposed rates include significant adjustments for areas such as Chakkarpur and Nathupur, with agricultural and commercial properties experiencing increases ranging from 10 per cent to 20 per cent. Residential properties in sectors like DLF Phase I and IV will see a rise of up to 30 per cent, further aligning official rates with real market trends(word).

Real estate developers have largely welcomed the move. Mohit Kalia, vice-president of Raheja Developers, stated, “Gurugram’s real estate is a leader in both the NCR and the country. Aligning circle rates with market trends will enhance transparency.”

Sanjeev Arora, director at 360 Realtors, noted that areas like Sohna and New Gurgaon might see limited impact since prices there already outstrip official rates. However, prospective buyers are concerned. Kamlesh Bist, a resident of Sector 84 seeking a home, lamented, “With prices already in crores, even a minor increase in circle rates pushes ownership further out of reach for the

middle class.”

As demand continues to outpace supply, experts predict steady price growth across Gurugram’s micro-markets. The hike in circle rates could streamline property registrations but also heighten affordability challenges for

many buyers.