Haryana Hikes Property Collector Rates: Impact on Real Estate Market

The Haryana government has announced a significant hike in collector rates for property registration, ranging from 10% to 50%, effective August 1. This is the second hike in eight months, and real estate dealers are concerned it may stall the market.

HaryanaReal EstateProperty RatesCollector RatesGurgaonReal EstateJul 31, 2025

Haryana Hikes Property Collector Rates: Impact on Real Estate Market

Real Estate:The Haryana government will implement revised collector rates for property registration from August 1, with hikes ranging from 10% to 50% in both urban and rural areas. This move is expected to push up property rates, and dealers are apprehensive that it may stall the real estate market. This will be the second hike in collector rates in Haryana in just eight months.

The last revision was made effective from December 1, 2024. Typically, collector rates are revised annually on April 1. However, the 2024 adjustment was delayed due to the Lok Sabha and Assembly elections.

A senior official involved in the development stated that in urban areas of districts such as Gurgaon, Panchkula, and Faridabad, the collector rates are currently lower than the market rates. “The government aims to align collector rates with market rates to curb real estate transactions through black money. However, a substantial hike in one go could upset buyers. Therefore, a slab-wise increase of 10%, 20%, 30%, 40%, and 50% has been proposed, taking into account the market rate of properties in different areas,” the official explained.

For Gurgaon, the draft collector rate notification proposes a 10% increase in circle rates for Sector 42, home to upscale properties like DLF Camelias and the Golf Club. Residential properties in this sector will see a rise from Rs 72,700 to Rs 79,970 per square yard. Commercial and retail spaces are set to increase from Rs 14,400 to Rs 15,500 per square foot, while office and IT spaces will see a marginal increase from Rs 10,080 to Rs 11,000 per square foot.

Other areas within Gurgaon will experience varying hikes, ranging from 5% to 40% and higher for newly developing sectors. For instance, residential properties in Rajeev Nagar (Sector 13) will see a hike from Rs 25,300 to Rs 35,000 per square foot.

The circle/collector rate is the minimum price set by the government for real estate transactions and is legally binding. The market rate can fluctuate, but the registration fee and stamp duty are based on the circle rate. The draft document states that residential group housing in Gurgaon will be valued at four times the agricultural collector rate, and commercial rates will be five times the agricultural rate. Additional charges apply to plots facing parks and those with multiple open sides.

The Panchkula Property Dealers Welfare Association has termed the hike “sudden and excessive.” Its chairman, Sunil Sahni, said, “For prime locations in Panchkula’s sectors 6, 7, and 8, the hike has been proposed up to 50%. For prime plots, it has been proposed from the current Rs 72,000 to Rs 1.08 lakh per square metre. This will force property buyers to reconsider their purchases due to the substantial additional charges for registration.”

In Panchkula sectors 2, 4, 15, 16, 17, and 18, a 50% hike in collector rates for residential property registration has been proposed, increasing rates from Rs 46,800 to Rs 70,200 per square metre. In the Mansa Devi Complex, specifically sectors 4, 5, and 6, the current rate of Rs 66,000 per square metre is set to increase to Rs 99,000 per square metre.

Sahni added, “This hike is sudden and is being introduced in the middle of the financial year. Buyers and sellers are not prepared for this increase. Moreover, very little time has been given to file objections over the proposed hike. The proposed rates were uploaded on the government website on Wednesday, and they are set to take effect from Friday.”

These changes will affect stamp duty and registration charges, which are linked to the notified collector rates. The proposals are pending public feedback, which can be given until 1 PM on Thursday.

The revised rates were initially scheduled to come into effect from April 1, at the start of the financial year 2025-26. However, the government delayed the implementation following protests, as it came only five months after the last revision. On July 23, the Department of Revenue and Disaster Management sent letters to officials in all districts, instructing them to enforce the new collector rates for immovable property registrations under Sections 17 and 18 of the Registration Act, 1908, at the earliest.

A senior official in the department noted that the state earned Rs 12,300 crore in revenue in the 2023-24 fiscal year. This amount jumped to approximately Rs 14,200 crore in 2024-25 following the rate hike in December. With the new revision, they project an additional revenue generation of Rs 2,000 crore.

Property dealers argue that the hike will adversely impact buyers’ purchasing power. While they believe property prices won’t rise, higher collector rates will increase the investment required to buy new property. Mohit Gawri, vice-president (sales) at RISE Infraventures Ltd, stated that aligning circle rates with market values is necessary for long-term transparency, but the proposed hike in Gurgaon may be too aggressive given current property prices. “Many micro-markets are at or near peak pricing, and such a sudden revision could add pressure on end-users and lead to slower transaction volumes,” Gawri said.

Ankit Kansal, managing director of 360 Realtors, noted that the government had previously capped further rate increases when revising rates in December 2024. “The decision to increase rates again might not be prudent and could result in higher market rates. Property prices are already soaring in Gurgaon, and many parts have become unaffordable for average middle-income buyers. The average cost of a 2 BHK in Gurgaon starts at Rs 2-3 crore, and any further hike in circle rates will only exacerbate the situation,” Kansal added.

The Panchkula Property Dealers Welfare Association has sent a memorandum to the Panchkula Deputy Commissioner, urging that the hike be limited to 10-20% instead of the proposed 50%. General secretary Abhay Jain appealed for a reasonable grace period before implementing the revised rates to allow ongoing property transactions to be completed without undue financial strain.

Panchkula Deputy Commissioner Monika Gupta confirmed a meeting on Friday to address objections and finalize the circle rates. In a letter to Deputy Commissioners and Divisional Commissioners on Tuesday, Haryana Additional Chief Secretary (Revenue) Sumita Misra stated that complaints and objections on the draft collector rates must be resolved by July 31, 2025, and the revised rates should be enforced from August 1, 2025.

Congress MP Deepender Singh Hooda demanded the immediate withdrawal of the proposed hike. “The sudden increase in property valuation will create instability in the market, which may discourage potential investors and prompt them to consider other locations,” he said.

Frequently Asked Questions

What is the purpose of revising collector rates in Haryana?

The purpose of revising collector rates is to align them with market rates to curb real estate transactions through black money and to increase government revenue.

When will the new collector rates take effect?

The new collector rates will take effect from August 1, 2025.

What is the range of the proposed hike in collector rates?

The proposed hike in collector rates ranges from 10% to 50%.

How will the hike in collector rates affect property buyers?

The hike in collector rates will increase the registration fees and stamp duty, which will require buyers to arrange for additional funds and may impact their purchasing power.

What are the concerns of property dealers regarding the rate hike?

Property dealers are concerned that the rate hike will stall the real estate market, make properties unaffordable for average buyers, and lead to slower transaction volumes.