Circle rate hike may trigger 5-20% rise in Gurgaon realty prices

Published: October 11, 2010

In its bid to bridge the gap between real estate prices and existing sector rates, the Gurgaon district administration has jacked up the circle rates for the second time on Sunday. The revised rate will result in a 5-20% increase in circle rates of properties in Gurgaon from Monday.

The revised rates, according to property experts, might not have much of an impact on the real estate prices but it will make property registration a costly affair. The lowest increase in the circle rate will be in the case of properties falling in areas like Farukh Nagar, Pataudi and Manesar that are outside the already declared residential, commercial and industrial zones. The circle rate will witness a 20% increase in case of colonies falling under urban Gurgaon, the new city and private colonies.

Deputy commissioner R K Kataria said only few patches of land falling under areas where new sectors will come up will see an over 20% hike in the rate declared by the district administration. This has been done after studying and observing the recent trend of property registration in Gurgaon. This will also help us reduce the gap between government fixed circle rate and the actual market rate. This will also reduce the role of black money in this business, the DC added.

Market sources feel this will help little to curb the use of black money in the property sale and purchase. For example, even after the revised circle rate, one yard of residential property in DLF-I will come close to Rs 38,000 whereas prevailing market rate is Rs 1 lakh.

Kataria claimed the increase is realistic. Sources said the hike will benefit farmers and agriculture land owners since a huge chunk of their land is now being acquired by HUDA and other agencies for future development.

There is hectic buying and selling of property for future development areas such as the 2-km land around KMP Expressway, residential zones around and the southern and northern peripheral roads, Kataria said. Apart from this, the district administration has also fixed the minimum price for flats in group housing societies. In case of GHS spread over two acres, one square feet will cost Rs 3,250 and in GHS spread over more than two acres, it would be around Rs 4,000 per square feet.

The revised rate would generate more revenue for district administrationm, Kataria said.

Source: The Economic Times

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