The Haryana government’s 30% hike in circle rates for prime locations like Golf Course Road has pushed Gurugram’s luxury housing market beyond global hotspots like New York.
You can buy a 5,000 sq ft (city) apartment at the trendy DLF Magnolia in Gurugram’s Sector 42 for Rs 300 crore, while the same amount can buy a six-room penthouse with two terraces and views of New York’s Empire State Building. You can get it. (According to Zillow, a popular high-tech real estate marketplace in the US).
From December 1, Haryana has increased circle fees by 10-30 per cent. This will push the price of penthouses in certain areas of Gurugram to over Rs 100 crore. The steepest rise is in upscale areas like Golf Course Road, while the lowest is in older Gurugram residential areas and HSVP sectors.
The price increases are expected to increase real estate revenue in Millennium City by at least 25% in some upscale neighborhoods and an average of 15% in most other areas, according to people familiar with the matter. Circle rate is the minimum price set by the government below which real estate registration cannot be assessed. Registration fees and stamp duty will be charged based on the circle rate.
Deputy Commissioner Ajay Kumar said the new interest rate will not only increase revenue but also bridge the gap between circle interest rate and market value, which is about 35 per cent.
The hike also cements Gurugram’s transformation into a luxury real estate hub on par with Mumbai and other world-class cities. The minimum retail price for residential projects such as DLF Ararias, DLF Magnolia and DLF Camelias is currently Rs 35,750 per sq ft, while the minimum retail price for 2023-24 is Rs 27,500 per sq ft. Other luxury hotels, including La Burnham, La Lagoon and The Palm Springs, will also see a 30% increase in circle rates. DLF Camellias apartments are currently priced between Rs 67 million and Rs 100 million. Prices are expected to go up by Rs 20,000 crore due to circle rate revision.
Regarding the hike in circle interest rates, real estate developers said it would do little to deter buyers. “Despite soaring prices, the real estate sector in Gurugram is booming. Demand is high in areas like Dwarka Expressway and Southern Peripheral Road.Revision in circle rates will lead to increased revenue for the state and can be used to strengthen infrastructure,” said Pradeep Agarwal, Chairman, Signature Global (India).
Mohit Kalia, vice president of sales at Raheja Developers, said the rise in property prices has been phenomenal. “The city’s luxury real estate market is one of the most sought after not only nationally but also internationally…The increase in circle fees should ensure better amenities,” he said.
Meanwhile, Farrukhnagar, which is emerging as a logistics hub in the north, has the largest inventory of agricultural, residential and commercial real estate available. Circle rates are increasing by 10-20 percent and farmers are elated and selling their land for warehouse development. The official said the hike would ensure increased compensation in case of land acquisition for government projects.
