Circle rates hiked by 30%, Gurugram rivals NY in luxury housing

A 30 per cent hike in circle rates by the Haryana Government for prime locations like Golf Course Road has pushed Gurugram’s luxury housing market beyond global hotspots like New York.

While Rs 30 crore can buy you a 5,000 sq ft (built-up area) apartment in swanky DLF Magnolias in Gurugram’s Sector 42, the same amount can fetch you a six-room penthouse with two terraces and the Empire State Building view in New York (as per Zillow, a popular US tech real estate marketplace).

Effective December 1, Haryana has hiked the circle rates by 10 to 30 per cent. With this, the prices of penthouses in certain Gurugram localities are set to cross the Rs 100 crore mark. The steepest hike has been in luxury areas like Golf Course Road, while the lowest is in old Gurugram residential localities and HSVP sectors.

The hike was expected to boost the Millennium City’s realty revenue by a minimum of 25 per cent in certain luxury pockets and at an average 15 per cent in majority other parts, said an official. The circle rate is the minimum price set by the government below which a property cannot be evaluated for registration. The registration fee and stamp duty are charged on the basis of the circle rate.

Deputy Commissioner Ajay Kumar said the new rates would not only boost revenue, but also bridge the gap between the circle rate and market value, the difference standing around 35 per cent.

The hike also cements Gurugram’s transformation into a luxury real estate hub, rivalling Mumbai and other top world cities. Residential projects such as DLF Aralias, DLF Magnolias and DLF Camellias now have a minimum retail price of Rs 35,750 per sq ft, compared to Rs 27,500 per sq ft in 2023-24. Other upscale properties such as Laburnum, La Lagune and The Palm Springs will also see a 30 per cent hike in circle rates. In DLF Camellias, flats are currently priced between Rs 67 crore and Rs 100 crore. The circle rate revision is expected to see the prices surge by Rs 20 crore.

About the circle rate hike, realty developers said it would hardly deter buyers. “The high prices notwithstanding, Gurugram’s real estate sector is booming. There is a high demand in areas like Dwarka Expressway and Southern Peripheral Road. The circle rate revision will lead to more revenue generation for the state, which can be spent on strengthening infrastructure,” said Pradeep Aggarwal, the chairman of Signature Global (India) Ltd.

Mohit Kalia, vice-president of sales at Raheja Developers, said the manner in which the property rates had risen was phenomenal. “The city’s luxury realty market is the most sought-after not only in the country, but even internationally…. The circle rate hike should ensure better amenities,” he said.

Meanwhile, Farukhnagar, emerging as the logistics hub of the North, has the largest chunk of agriculture, residential and commercial property inventory available. It is witnessing a hike in circle rates by 10 to 20 per cent, which has elated farmers and they are out selling their properties for warehouse development. The hike would ensure increased compensation in case of land acquisition for government projects, said the official.