Gurugram: Proposed Circle Rate Hike Raises Concerns Among Developers

The Gurugram district administration has proposed a hike in circle rates, ranging from 10% to 30%, which is expected to increase property prices. Developers and real estate experts are voicing their concerns, fearing further dampening of the already slow real estate market.

Circle RatesGurugramReal EstateProperty PricesDevelopersReal EstateJul 31, 2025

Gurugram: Proposed Circle Rate Hike Raises Concerns Among Developers
Real Estate:The Gurugram district administration has proposed new circle rates, which will likely increase the cost of buying property in the city. The proposed hike, ranging from 10% to 30%, is set to affect homes in private licensed colonies, HSVP sectors, and various other areas. Home buyers will have to shell out more money, which could further slow down the already sluggish real estate market.

Developers and real estate experts are particularly worried about the impact of this proposed hike. The last revision in circle rates, which took place on December 1, 2024, saw an increase of 10% to 30% across Gurugram. The new proposal, if implemented, will further increase the financial burden on home buyers.

For instance, apartments on Golf Course Road, which falls under the Wazirabad tehsil, will become more expensive. The circle rates for upscale projects in this area are proposed to be increased by 10% to 15%. According to the district administration, the circle rates for flats in upscale colonies such as DLF Magnolias, Aralias, and Camelias are set to rise from ₹37,750 per square foot (psf) to ₹39,325 psf. Similarly, the circle rate for flats in Carlton will increase from ₹15,015 psf to ₹16,517 psf, and for Crest and The Icon, it will rise from ₹17,160 psf to ₹18,876 psf.

The circle rates of floors in licensed colonies by developers and HSVP sectors will also see a significant increase, from ₹9,295 psf to ₹10,225 psf. This will affect a wide range of properties, making them more expensive for potential buyers.

A Gurugram district administration spokesperson stated that the process of determining the collector rate of land for the year 2025-26 has begun. The tehsil-wise list of proposed collector rates has been uploaded on the official portal gurugram.gov.in, allowing the public to provide their opinions by July 31, 2025. Gurugram Deputy Commissioner Ajay Kumar emphasized that residents have been given a full opportunity to give their objections or suggestions to these proposed rates, ensuring a transparent and fair process.

The proposed increases in circle rates are not limited to specific areas. For instance, the circle rates of plots in major colonies in Wazirabad tehsil, such as Garden Estate, will be increased from ₹90,000 per square yard (psy) to ₹103,500 psy. In Mayfield Garden, the rate will be revised from ₹80,500 psy to ₹92,000 psy, and in Nirvana Country, the rate will rise from ₹115,000 psy to ₹132,250 psy. The circle rates for plots in HSVP sectors such as 53, 54, 55, 56, and 57 will be increased by 10% to 15%.

The circle rate of residential land in villages such as Chakkarpur, Nathupur, and Silokhra is also proposed to be increased by 10% to 15%. In DLF Phase 1 to 5, the circle rate of residential plots will see a hike of 10% to 15%.

In Gurugram tehsil, the circle rates of floors in residential colonies developed by developers and HSVP will be increased from ₹7,800 psf to ₹9,400 psf. The circle rates of apartments in group housing societies in sectors 1, 2, 3, 3A, 4, 5, 6, and 7 will be raised from ₹6,500 psf to ₹9,000 psf. The circle rates for flats in sectors 104 to 115 will be increased from ₹4,200 psf to ₹7,000 psf.

The administration has also proposed a 77% hike in the circle rates of land in Gurgaon village, which is close to NH48 and the Dwarka Expressway. In residential colonies of Old Gurugram, the circle rates will be hiked by an average of 15% to 30%. On Old Delhi Road and Mehrauli Road, the circle rates will be increased by 19%.

The price of residential plots in HSVP sectors such as 38, 40, 42, 43, 4, 5, 6, and 7 will be revised by an average of 15%. In Badshahpur tehsil, the circle rates of plots and apartments in key colonies along Sohna Road and Golf Course Extension Road will be increased by 15% to 20%. For example, the circle rate of plots in Malibu Towne on Sohna Road will increase from ₹75,000 psy to ₹86,250 psy, and in Rosewood City, it will rise from ₹86,500 psy to ₹95,000 psy.

The circle rate of affordable flats will be revised from ₹5,000 psf to ₹5,500 psf.

Real estate experts in the city have described the proposed hike in circle rates as an untimely action, given the current market conditions. Vinod Behl, a city-based real estate expert, stated that the Gurugram administration’s plan to hike circle rates amid a slowdown in residential sales will adversely impact prospective homebuyers. “The sentiment of homebuyers had barely started improving with 100 bps cumulative cut in interest rates and stepping up of fresh housing supply. However, with the further hike in property acquisition cost due to increased circle rates, the price-sensitive affordable and mid-priced segment’s pick up may well be impacted,” he said.

Parveen Jain, president of Naredco (Haryana), added that the increase in circle rates will hit the market badly, further dampening sales. “The increase in property prices will bring down the market and negatively impact both developers and government revenue. Sales are already slow, and increasing the circle rates in the middle of the year will only exacerbate the situation,” he said.

Developers are advising caution and are urging the administration to reconsider the proposed hikes, emphasizing the need to support the real estate market during these challenging times.

Frequently Asked Questions

What are circle rates?

Circle rates, also known as guide rates, are the minimum values set by the government for the sale and registration of property. They are used to calculate stamp duty and other registration charges.

Why is the Gurugram administration proposing to hike circle rates?

The Gurugram administration is proposing to hike circle rates to align with the current market values and to ensure a fair and transparent property transaction process.

How will the proposed hike in circle rates affect home buyers?

The proposed hike in circle rates will increase the cost of buying property, making it more expensive for home buyers. This could further slow down the already sluggish real estate market.

What is the impact of the last circle rate revision in Gurugram?

The last revision in circle rates, which took place on December 1, 2024, saw an increase of 10% to 30% across Gurugram. This increase already had a significant impact on the real estate market.

What is the public's role in the circle rate revision process?

The public can provide their opinions and objections to the proposed circle rates by July 31, 2025, through the official portal gurugram.gov.in. This feedback will be considered in the final decision-making process.

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