Property registration in Gurugram is set to become more expensive starting December 1, 2024, as the district administration implements a 10% to 30% hike in circle rates. The revised rates will remain effective until March 31, 2025. Luxury residential areas like Golf Course Road are expected to witness the steepest increase at 30%.
Announcing the changes on November 29, Deputy Commissioner Ajay Kumar stated, “The new collector rates, also known as circle rates, for residential, agricultural, and commercial land reflect the prevailing market rates in respective areas.” Circle rates represent the government-mandated minimum price for property sales and transfers, serving as a key revenue source for the state.
Impact of circle rate hike on Real Estate market
The decision to revise circle rates is a routine process carried out by state authorities, typically twice a year in Haryana. The hike impacts the overall cost of property acquisition for homebuyers, which could lead to a slowdown in sales in the short term.
Santhosh Kumar, Vice Chairman of ANAROCK Group, explained, “Any increase—whether in interest rates, circle rates, or basic property costs—directly impacts buyers. The current hike may cause homebuyers to reevaluate their purchase decisions.”
However, Mohit Jain, Managing Director of Krisumi Corporation, noted the sector’s resilience. “The real estate market has been a critical driver of economic growth, supported by ancillary industries. While a hike in circle rates could discourage some buyers, it is unlikely to derail the market’s overall momentum,” he said.
Why Gurugram’s Real Estate market remains resilient
Industry experts argue that Gurugram’s thriving real estate sector will likely absorb the rate increase due to its strong fundamentals, including high demand, rapid infrastructure development, and rising income levels.
Pradeep Aggarwal, Chairman of Signature Global, emphasized, “Prime areas like Dwarka Expressway and Southern Peripheral Road will continue to see robust demand due to limited supply and sustained investor confidence.” However, he advised policymakers to take a balanced approach, ensuring the sector’s long-term sustainability.
A strategic shift for buyers and developers
While the circle rate hike might initially deter some homebuyers, it highlights the importance of careful decision-making in real estate investments. The market’s resilience, bolstered by strong infrastructure and steady demand, ensures that Gurugram remains a preferred destination for investors and end-users alike.
