Gurugram's Circle Rate Hike: Impact on Low to Mid-Income Buyers
The proposed 10-30% increase in circle rates in Gurugram may price out low to mid-income buyers, exacerbating the already high property prices. This is the second rate hike since December 2024, amid subdued housing demand.
GurugramCircle RatesProperty PricesHousing DemandLow To Midincome BuyersReal Estate NewsAug 03, 2025
According to Magicbricks, property prices in the city have already risen 67 per cent in two years—from ₹9,718 per square foot in Q2 2023 to ₹16,186 in Q2 2025.
“The extent of these hikes warrants careful consideration, especially in Gurugram, where property prices have already surged significantly,” said Kartikeya Sharma, associate principal partner at Square Yards. “Further increases could escalate acquisition costs, putting additional financial strain on price-sensitive segments.”
Vineet Nanda, director of sales and marketing at Krisumi Corporation, warned that the hike could hurt buyer sentiment just as it was recovering. “The steep rise comes at a time when consumer sentiment has only just begun to improve, following the RBI’s three consecutive rate cuts totaling 100 basis points,” he said.
Last week, the Haryana government approved revised circle rates—the minimum valuation for property registration—across HSVP sectors, private licensed colonies, and other areas in Gurugram. The new rates, effective from August 1, will increase stamp duties on property transactions. While initial proposals included hikes of up to 77 per cent in residential areas and 145 per cent for agricultural land, final increases were capped at 30 per cent.
For instance, the circle rate for agricultural land in Bajghera village near Dwarka Expressway was originally proposed to rise from ₹2.03 crore to ₹5 crore per acre. It will now increase to ₹2.64 crore per acre.
Some developers see the revision as a step towards aligning valuations with market trends. “If implemented in a balanced manner, the move can improve transparency and buyer confidence,” said Pradeep Aggarwal, chairman of Signature Global.
Calling Gurugram a “billionaire’s playground”, Rajjath Goel, managing director at MRG Group, said luxury apartments priced above ₹5 crore “selling out within days hardly surprises anyone here”. A rationalised circle rate framework, he added, will help boost state revenues and benchmark property values more fairly.
Developers noted that the hike is unlikely to affect luxury housing demand in key micro-markets like Dwarka Expressway, Golf Course Road Extension, Sohna Road, and New Gurugram. Circle rates in upscale projects such as DLF Magnolias, Aralias, and Camelias are being raised from ₹37,750 to ₹39,325 per square foot. In licensed colonies and HSVP sectors, the rates are going up from ₹9,295 to ₹10,225 per square foot.
“While there might be a short-term price adjustment in some pockets, Gurugram’s overall luxury market remains on a strong, upward path,” said Vishesh Rawat, vice-president at M2K Group.
The impact of the revision is expected to extend to other districts such as Panchkula, Faridabad, and Sonipat due to their proximity to Delhi and Chandigarh.
Frequently Asked Questions
What is the proposed increase in circle rates in Gurugram?
The proposed increase in circle rates in Gurugram is 10-30 per cent across various sectors, including residential and agricultural land.
How have property prices in Gurugram changed over the past two years?
Property prices in Gurugram have risen 67 per cent in two years, from ₹9,718 per square foot in Q2 2023 to ₹16,186 in Q2 2025.
What are the concerns of developers and market watchers regarding the circle rate hike?
Developers and market watchers are concerned that the hike may price out low to mid-income buyers and put additional financial strain on price-sensitive segments, especially given the already high property prices.
When will the new circle rates be effective?
The new circle rates will be effective from August 1, 2025.
How will the circle rate hike affect luxury housing demand in Gurugram?
The hike is unlikely to affect luxury housing demand in key micro-markets like Dwarka Expressway, Golf Course Road Extension, Sohna Road, and New Gurugram, as these areas remain strong and upwardly mobile.
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