GURUGRAM: Property prices in Gurugram are poised for a significant increase, with the district administration proposing a rise in circle rates ranging from 8% to 77% for residential areas, and up to 145% for agricultural land.
Circle rates represent the minimum price at which land or property can be sold and are legally binding, unlike market rates that fluctuate based on demand and supply.
The proposed increases, particularly in premium neighborhoods such as DLF I-V, South City, Suncity, Sushant Lok, and Golf Course Road, are suggested to be around 10-20%. For luxury flats in DLF Aralias, The Magnolias, and Camellias along Golf Course Road—where prices exceed Rs 100 crore—a hike of 10% is planned. This will set the new circle rate at Rs 39,325 per sqft, a rise from the previous Rs 35,750/sqft.
Realtor Yash Handa stated that current circle rates for high-end properties are still undervalued compared to market rates. “Circle rates should reflect market trends. For instance, while properties in Aralias, Magnolias, and Camellias exceed Rs 55,000, their circle rates are 30% to 60% lower. Even for The Crest luxury apartments, the revised circle rate of Rs 18,866 per sqft remains significantly below the market rate of Rs 50,000/sqft,” Handa noted.
More substantial hikes—up to 62%—are proposed for new sectors along the Dwarka Expressway, with residential plot rates potentially increasing from Rs 40,000 to Rs 65,000 per square yard. The largest proposed hike for residential plots is in Gurgaon Gaon, which could see a jump from Rs 25,300 to Rs 45,000 per square yard, or a staggering 77% increase.
Agricultural land may experience the most drastic hikes, with proposed rises of 145% in Bajghera, from Rs 2 crore to Rs 5 crore per acre, and a 108% increase in Sirhaul, from Rs 2.39 crore to Rs 5 crore per acre. The proposal, open for objections until July 31, requires approval from the state government, with new rates potentially effective in about a month.
This move follows the Haryana government’s decision in March to maintain stable circle rates to “boost buyer confidence” and encourage participation from homebuyers.
The last circle rate increase occurred in December 2024, where they went up by 10-30%. Ankit Kansal, managing director of 360 Realtors, expressed concern, stating that increasing rates is neither “prudent nor wise,” as property prices are already quite high and unaffordable for many.
“Authorities should reconsider. Adjusting circle rates by 10-77% may push market prices even higher. Property costs are already skyrocketing, with 2BHK apartments starting at Rs 2-3 crore. Any further hike could spiral costs even more,” Kansal added.
Nitin Mishra, an IT professional in Gurugram, echoed these sentiments, warning that continuous property price increases might render the city unaffordable, impacting the local economy.
Mohit Gawri, vice-president of sales at RISE Infraventures, acknowledged that aligning circle rates with market values is essential for transparency but cautioned that this steep increase might be excessive.
