Two months after revising the circle rates in Gurugram, the Gurugram district administration has revised the circle rates again with a hike of about 15% in different parts of the city. The new rates will come into effect from April 9th, 2018, and the registry of a property will be executed according to the revised rates now.
Earlier, these rates were revised once a year, but experts said a sustained slowdown in the real estate market has forced the government to fine-tune levies on real estate. Chief Minister Manohar Lal Khattar had asked the Gurugram administration to revise circle rates twice in a year.
Earlier this year, the district administration of Gurugram had revised the circle rates on February 12, 2018, after a gap of four years. Reversing a trend where the rates had remained unchanged in 2014-15 and 2015-16.
The new circle rates in Gurugram have divided the city into different areas. Every sector or colony has different rates, and for the first time, roads like Golf Course Road, MG Road, Delhi-Gurugram Expressway and Sohna road have been categorized as a separate circle with a unified rate.
Though the officials are saying that the State Govt. has tried to rationalize prices of properties in different areas of the city. Earlier, some adjoining sectors had huge differences in circle rates. With the new circle rates in Gurugram, the administration has tried to bring rates of adjoining areas on a par.
The very idea behind revising the circle rates is to ensure that the difference between the market rates and circle rates is not significant. The difference between circle rate and market rate should not be more than 20 percent . The revised circle rates reflect a balanced approach and will encourage more people to invest in property.
In an attempt to keep real estate and land prices in urban and rural areas in tune with market rates, the Haryana government had decided in December 2017 to revise collector rates twice in a fiscal year.
Collector or circle rate is the minimum price at which a property is registered when being transferred, and stamp duty from it is a major source of revenue for the government. The stamp duty is 8% in urban areas and 5% in rural areas.
There is an upswing in the sale of plots, ready-to-move-in houses and built-up houses, because of which, the government wants circle rates in Gurugram to be in sync with market rates. The property registration is set to get costlier in Gurugram as the new circle rates come into effect.
However, in licensed group housing (GH) societies (sectors 1-57), Ambience Island and Laburnum and others, the circle rate remains unchanged.
In February, the city administration revised the circle rates to ₹5,000/sqft in Sector 1-57, ₹10,000/sqft in Ambience Island and ₹7,000/sqft in Laburnum and others.
DLF 1, 2, 3 and 4, Sushant Lok 1, National Media Centre, South City 1 and Garden Estate saw an increase in the circle rate from ₹1,50,000 to ₹1,65,000.
DLF 1 and Sushant Lok 1 saw the maximum increase in circle rates in the residential category from ₹65,000/sqyd to ₹77,000/sqyd. DLF 2 and 4 and South City 1 saw an increase of ₹7,000/sqyd, from ₹65,000/sqyd to ₹72,000/sqyd. DLF 3 and NMC saw an increase from ₹56,000/sqyd to ₹66,000/sqyd.