Gurugram Property Circle Rate Increase by 10-30%
Starting December 1, 2024, Gurugram will witness a significant increase in its property circle rates, with hikes ranging from 10% to 30%. This move, announced by district administration officials, could further escalate the already high property prices in one of India’s priciest real estate markets. The revised circle rates will remain in effect until at least March 31, 2025.
Key Areas See Higher Hikes in Gurugram Property Circle Rate
The increase in Gurugram Property Circle Rate will impact most areas in the city, with an average hike of 10% to 20%. However, the prime locations around Golf Course Road, Southern Peripheral Expressway, and Dwarka Expressway will experience the highest hikes, up to 30%. Deputy Commissioner Ajay Kumar highlighted that the rise in circle rates reflects the market value of properties in these areas. “These areas have experienced substantial market growth, which justifies the higher increase in collector rates,” he stated.
Real Estate Experts Weigh In
While the hike in Gurugram Property circle rates is expected to bring property prices closer to market value, real estate experts believe the impact on prices will be minimal. According to Mohit Kalia, Vice President of Raheja Developers, the hike will align the circle rates with the current market prices, but the city’s real estate market will continue to thrive. “Although property prices are high, Gurugram’s real estate market continues to be one of the top performers in both NCR and across the country. This adjustment will maintain equilibrium,” he said.
On the other hand, Sanjeev Arora, Director at 360 Realtors, noted that the new circle rates might not significantly affect property prices in well-established micro-markets like Golf Course Road, Golf Course Extension, SPR, and MG Road, where prices are already much higher than the current circle rates. He added that emerging areas like Sohna, New Gurgaon, and Dwarka Expressway are also seeing higher-than-average property prices, which limits the effect of the rate increase.
The Growing Demand for Properties
Despite concerns over rising property costs, experts agree that Gurugram’s real estate market will continue to see growth. The demand for homeownership remains high, with limited supply contributing to price increases. “People of all age groups are looking to own homes, which will keep driving demand,” Arora stated.
However, for potential buyers, especially those from the middle class, the rising circle rates and property prices may make owning a home in Gurugram increasingly difficult. Kamlesh Bist, a resident of Sector 84, expressed his concern: “With property prices already in the crores, this hike will make it nearly impossible for the average person to afford a home here.”
Conclusion
Gurugram’s real estate market remains robust, but the increase in circle rates further cements its position as one of India’s most expensive cities. While the hike aligns with market conditions, it could widen the affordability gap for many buyers. Homeownership in the city may become an even more distant dream for those in the middle-income bracket. As property prices continue to rise, potential homeowners must weigh their options carefully.
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