Gurugram proposes hike in circle rates, buying house to become more expensive

The circle rates are hiked twice in a year and the administration has sought objections for the revised rates till January 10. Move to hike circle rates is likely to depress the market further.
As per the new directions, the maximum increase in circle rates has been proposed for registry of floors built on residential plots, which has been almost doubled.(HT PHOTO)
As per the new directions, the maximum increase in circle rates has been proposed for registry of floors built on residential plots, which has been almost doubled.(HT PHOTO)
Updated on Jan 03, 2020 09:55 AM IST
Copy Link
Hindustan Times, New Delhi | By

Homebuyers will have to shell more money to buy independent floors in plotted residential colonies, and apartments in group housing societies mostly in private developer colonies along the Golf Course Road, Sohna Road, the Delhi-Gurgaon Expressway and MG Road. This is because the Gurugram administration has proposed to increase the circle rate in these areas. With the increase in the circle rates, the buyers will have to shell out more money in the form of stamp duty to be paid to the government, said experts.

The administration, however, has not proposed large-scale changes in circle rates in colonies on the western side of the highway; areas in the old city, along the Old Delhi-Gurgaon Road, and those towards the Dwarka Expressway.

Circle rates hiked

The circle rates are hiked twice in a year and the administration has sought objections for the revised rates till January 10. Experts opined that move to hike circle rates is likely to depress the market further as the number of sellers is more than the number of buyers. “This move is not going to generate revenue and it will further reduce the transactions happening in the market,” said Sanjay Sharma, a city-based broker.

The circle rate is the minimum value at which sale or transfer of a plot, built-up houses, apartment, commercial property or land takes place. It the price at which registry of properties is done and the buyer pays stamp duty as per the circle rate.

New rates

As per the new directions, the maximum increase in circle rates has been proposed for registry of floors built on residential plots, which has been almost doubled from 5,500 per square foot(psf) to 10,000 psf. Although the district administration has sought objections from the citizens and stakeholders for the revised circle rates, many developers said that this kind of increase would badly hit the real estate market.

The circle rates for group housing projects in sectors 15,27, 28, 30, 31-32A, 39, 40, 41, 42, 43, 45, 46, 50, 51, 52, 53, 54, 55, 56, 57 has been increased from 5,000 psf to 12,000 psf. As far as flats in group housing societies and plots of licenced colonies in sectors 58, 59, 60, 61, 62, 63, 63A are concerned, the rate has been increased from 3,500 psf to 5,600 psf.

On Golf Course Road, in upscale colonies of Aralias, Magnolia and Camelia-developed by DLF, the rates have been increased from 20,000 psf to 22,000 psf. Ambience island on the Delhi-Gurgaon Expressway will also see an increase from 10,000 to 13,000 psf. In privately developed group housing colonies, which include Laburnum, Unitech World Spa, Parsvnath Exotica, The Verandas, Palm Springs, Exotica, Park Place, Belaire, Comela, Vipul Belmonte, Central Park, Princeton, Carlton, the rate has been increased from 8,000 psf to 17,000 psf.

In case of floors in licenced colonies and HSVP sectors, the rate has been increased from 5,500 psf to 10,000 psf. In group housing societies in Gwal Pahari, the rate has been increased from 3,000 psf to 7,000 psf.

For the plots in licenced colonies like Sushant Lok and DLF Phase-1, the rates for residential plots have been increased from 77,000 to 85,000 psf. The increase has been substantial in DLF Phase 2 and South City-1, where the rates have been increased 72,000 psf to 1,20,000 psf. In DLF Phase-3 and the National Media Centre area, the rate has been hiked from 66,000 psf to 80,000 psf.

Impact on real estate

While the rates have not been changed much across the city but properties in licenced plotted colonies, group housing societies, builder floors, which are mostly concentrated along Golf Course Road, MG Road, Delhi-Gurgaon Expressway and Sohna Road are going to be the worst affected, say city-based realtors. “For a floor built on a 300 sq yard plot, the stamp duty fees payable to the government earlier was 6 lakh. But if the new rates are brought into force, the fees would double to 12 lakhs. It will make housing more expensive and will again hit the realty business, which is already facing trouble,” said Ramesh Singla, a city-based developer.

A number of city-based brokers and developers said that they are planning to lodge objections with district administration against the proposed hike.

Amit Khatri, deputy commissioner, Gurugram, who is also the revenue collector, said that the revised rates have been uploaded on the district administration website. “If there are any objections, then the citizens can submit their written suggestions with revenue department at the Mini Secretariat or send it via email till January 10,” he said in a statement.

SHARE THIS ARTICLE ON
  • ABOUT THE AUTHOR

    Abhishek Behl is principal correspondent, Hindustan Times in Gurgaon Bureau. He covers infrastructure, planning and civic agencies in the city. He has been covering Gurgaon as correspondent for the last 10 years, and has written extensively on the city.

Close Story
QUICKREADS

Less time to read?

Try Quickreads

  • One of the 14 Mughal-era gateways to punctuate the Walled City’s wall, the graceful Ajmeri Gate today is like a queen without her palace.

    Delhiwale: This way to Ajmeri Gate

    This venerable stone gateway originally signposted the way to the aforementioned pilgrim town. One of the 14 Mughal-era gateways to punctuate the Walled City’s wall, the graceful Ajmeri Gate today is like a queen without her palace.

  • Mahesh Choudhary, 45, went missing on April 4, 2007 and the case was registered five days later, after his son, Rakesh Choudhary, then 22, filed a missing complaint. (Representation purpose)

    Delhi: Cop’s hunt for kidnapper ends after a 15-year wait

    Assistant sub-inspector (ASI) Sanjeev Tomar’s quest ended on May 28, when he and members of his team arrested a man named Hari Om for abducting and killing Choudhary. Tomar, 47, now posted with the crime branch, was a constable at the Badarpur police station when the crime took place in 2007.

  • DFS chief Atul Garg said, “The addition of 89 new firefighting vehicles will help us improve our response time across Delhi”. (Photo by Amal KS /Hindustan Times)

    89 new trucks to help DFS speed up rescue operations

    The approval for purchasing 89 new fire trucks was sought against the condemnation of 60 fire trucks, which have diesel engines and have reached their expiry time of 10 years, and have to be taken off service.

  • Delhi minister Satyendar Jain. (ANI FILE)

    ED arrests 2 more in money laundering case against Delhi minister Satyendar Jain

    Vaibhav and Ankush were arrested under the provisions of Prevention of Money Laundering Act (PMLA). ED said both are directors of Ram Prakash Jewellers Pvt Ltd, which was raided on June 6. After the searches at premises linked to six people including the jewellery firm’s five directors, ED said it recovered 2.85 crore and 133 gold coins, alleging that the gold was from “unexplained sources” and was “secreted” in the properties.

  • A MCD official said enforcement teams seized 689.01 kg of plastic items and issued 368 challans on Friday.

    Problem of plenty: Ban no bar, Delhi markets struggle to get rid of plastics

    Following the latest notification of the Plastic Waste Management Rules, 2022 in February, the central government directed all states and union territories (UTs) to phase out SUPs in a planned manner by July 1, 2022.

SHARE
Story Saved
×
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Saturday, July 02, 2022