A hike in circle rates proposed by the administration in Gurugram

Gurugram residents are bracing themselves for the upcoming steep rise in property prices across the city. This unfolds following the district administration’s recent proposal to increase circle rates ranging between 8% to 77% in residential areas and up to 145% for agricultural land.

A circle rate, also called “guidance value” or “reckoner rate”, is a legally binding rate. It is the minimum price at which a property can be sold to a purchaser. This rate depends on various aspects, including recent market trends and location and is subject to change over time. In Gurugram’s premier areas, such as the South City, DLF I-V, etc., the proposed increment is said to be between 10 to 20%. For reference, flats/condos in upscale areas along Golf Course Road are usually sold for more than INR 100 crore. In such places, a 10% hike is proposed, meaning the increment will be from INR 35,750/sq. ft. to INR 39,325/sq. ft.

As for up-and-coming areas, like new sectors along the Dwarka Expressway, the district administration in Gurgaon has proposed a hike of up to 62% for properties. This means, circle rates for residential plots in these areas can climb up to INR 65,000/sq. yard from the existing INR 40,000/sq. yard.

Source: Economic Times