Haryana's Second Property Rate Hike in 8 Months: Real Estate Market Impacts
The Haryana government has announced a second hike in property registration rates within eight months, with increases ranging from 10% to 50%. This move is expected to impact the real estate market significantly.
Property RatesReal Estate MarketHaryanaCollector RatesHousing SocietyReal Estate NewsJul 31, 2025
A senior official explained that the government wants to bring collector rates and market rates closer to prevent real estate transactions through black money. However, the rates can't be hiked too much at once, as this could upset buyers. Therefore, a slab-wise increase—10%, 20%, 30%, 40%, and 50%—has been proposed, taking into account the market rates in different areas.
In urban areas such as Gurgaon, Panchkula, and Faridabad, the collector rates are currently lower than market rates. For example, in Gurgaon's Sector 42, which includes high-end developments like DLF Camelias and the Golf Club, the collector rate for residential properties will increase from Rs 72,700 to Rs 79,970 per square yard, a 10% hike. Commercial and retail spaces will see a significant increase from Rs 14,400 to Rs 15,500 per square foot, while office and IT spaces will rise from Rs 10,080 to Rs 11,000 per square foot.
Other areas in Gurgaon will experience varying hikes, with some newly developing sectors seeing increases of 40% or more. For instance, the residential property rate in Rajeev Nagar (Sector 13) will jump from Rs 25,300 to Rs 35,000 per square foot.
The collector rate, or circle rate, is the minimum price set by the government for real estate sales and is legally binding. The registration fee and stamp duty for property purchases are based on these rates. In Gurgaon, residential group housing 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 criticized the hike as sudden and excessive. Sunil Sahni, the association's chairman, noted that the proposed 50% hike in prime locations of Panchkula's sectors 6, 7, and 8 would significantly increase the registration costs for buyers. For example, the rate for prime plots in these sectors is set to rise from Rs 72,000 to Rs 1.08 lakh per square metre.
In sectors 2, 4, 15, 16, 17, and 18 of Panchkula, the collector rates for residential property registration will increase by 50%, from Rs 46,800 to Rs 70,200 per square metre. In the Mansa Devi Complex, specifically Sectors 4, 5, and 6, the rate will rise from Rs 66,000 to Rs 99,000 per square metre.
Sahni also pointed out that the proposed rates were announced with very little time for public feedback, leaving buyers and sellers unprepared. The rates are scheduled to take effect from August 1, 2025, with only a short window for objections.
These changes will impact stamp duty and registration charges, which are linked to the notified collector rates. The Department of Revenue and Disaster Management has instructed officials to enforce the new rates at the earliest, aiming to generate additional revenue. The state earned Rs 12,300 crore in revenue in the 2023–24 fiscal year, which increased to Rs 14,200 crore in 2024–25 following the December 2024 rate hike. The government projects an additional revenue generation of Rs 2,000 crore with the new revision.
Property dealers argue that the hike will negatively affect buyers' purchasing power. While they acknowledge the need for transparency, they believe the proposed hike in Gurgaon is too aggressive. Mohit Gawri, vice-president (sales) of RISE Infraventures Ltd, stated that many micro-markets are already at peak pricing, and a sudden revision could add pressure on end-users and slow transaction volumes.
Ankit Kansal, managing director of 360 Realtors, noted that the government had previously capped any further rate increases. He warned that the proposed hike could lead to further increases in market rates, making properties in Gurgaon unaffordable for average mid-income buyers. An average 2 BHK in Gurgaon already starts at Rs 2-3 crore, and any additional hikes in circle rates will exacerbate the issue.
The Panchkula Property Dealers Welfare Association has sent a memorandum to the Panchkula Deputy Commissioner, urging a more modest hike of 10-20% instead of 50%. They also requested a reasonable grace period before implementing the revised rates to allow ongoing transactions to be completed without financial strain.
Panchkula Deputy Commissioner Monika Gupta has scheduled a meeting for August 1 to address the objections and finalize the circle rates. Haryana Additional Chief Secretary (Revenue) Sumita Misra has instructed Deputy Commissioners and Divisional Commissioners to finalize the objections by July 31, 2025, and enforce the revised rates from August 1, 2025.
Congress MP Deepender Singh Hooda has demanded the immediate withdrawal of the proposed hike, citing concerns about market instability and the potential to discourage potential investors. The real estate market in Haryana is closely watching these developments, as the new rates could have far-reaching implications for buyers and sellers alike.
Frequently Asked Questions
What is the purpose of revising collector rates?
The purpose of revising collector rates is to align them more closely with market rates to prevent real estate transactions through black money and ensure transparency in the real estate market.
What is the range of the proposed hike in collector rates?
The proposed hike in collector rates ranges from 10% to 50%.
When will the new collector rates take effect?
The new collector rates are scheduled to take effect from August 1, 2025.
How are property dealers reacting to the proposed hike?
Property dealers are critical of the proposed hike, terming it sudden and excessive. They argue that it will negatively impact buyers' purchasing power and could slow down transaction volumes.
What are the potential economic impacts of the rate hike?
The rate hike is expected to generate additional revenue for the state government. However, it could also lead to increased property prices, making them less affordable for average mid-income buyers and potentially discouraging potential investors.
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