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Circle Rates Up In Gurgaon By 10-30%, Unlikely To Impact ‘Market Rate’ Property Prices

Priya Singh | 2023-09-27

The Gurgaon administration has increased the circle rate by 30 per cent in the residential areas and by 10 per cent in the commercial hubs. The new rates are effective from April 1, 2023
The Haryana government has increased the circle rates in Gurgaon. The circle rates in the residential sectors have gone up by as much as 30 per cent, while those in the commercial hubs have been increased by 10 per cent.
The circle rates in sectors on the Southern Peripheral Road (SPR), Golf Course Road and Dwarka Expressway have been increased by 30 per cent after the review. The new circle rates will be effective from April 1, 2023.

The circle rate, also known as the collector’s rate, is the minimum price at which a property is registered with the state’s revenue department. Builders and promoters are not allowed to sell homes and apartments below the circle rate set by the government.

According to experts, the increase in circle rates was on expected lines
Says Mohit Jain, managing director, Krisumi Corporation, “the increase in circle rates in Gurgaon has been in line with the increasing property prices because of the substantial growth in demand and price due to various infrastructure developments and enhanced connectivity.”
The increase is also unlikely to have an immediate effect on property prices, as they are anyway sold at higher market rates. The market rate is the rate at which a property is transacted and that is dependent on a variety of factors, including demand and supply, location, and other external market factors. Circle rates, on the other hand, are fixed by the administration on an annual or a half-yearly basis.