Buying property in Gurugram will be more expensive! Circle rate proposal to increase the rate by 145%
Buying property in Gurugram adjacent to Delhi can now be expensive. In fact, the district administration has proposed to make a big change in the government rates of property and land i.e. the circle rate, which can lead to a sharp increase in property prices in the city. According to the Times of India news, the proposal states that the circle rate in residential areas has been recommended from 8% to 77% and 145% on agricultural land. Understand here that the circle rate is the minimum price on which any land or property can be registered. This rate is decided by the government and is different from the market value, which is fixed on the basis of demand and supply.
How much can the circle rate increase?
In premium residential areas like DLF Phase IV, South City, Sushant Lok, Suncity and Golf Course Road, the circle rate is proposed by 10% to 20%. Luxury societies such as DLF Aralias, Magnolias and Camilias have a 10% increase. The existing circle rate here is ₹ 35,750/sq ft, while the proposed circle rate is ₹ 39,325/sq ft. Property businessman says that the market prices of flats in these high-end societies are more than ₹ 55,000 per sq ft, while the government circle rates are still 30% -60% less than the market rate. In such a situation, increasing rates are rational.
Why rates are being increased
The district administration says that the current circle rates are far behind the market rates. This gives the government less revenue in stamp duty. Tax is stolen by showing low price in many property deals. On passing the new proposal, buyers will have to pay more registry fees. Sells may have to pay more capital gains tax. Transparency in the real estate sector will increase, but the total cost is certain.
Proposal for huge increase in Dwarka Expressway
The new sectors around the Dwarka Expressway are proposed to increase by up to 62%. Currently there is ₹ 40,000/square yard, while the proposed rate is ₹ 65,000/square yard. Similarly, it has been recommended to increase the circle rate by up to 77% on residential plots in Gurugram village. The current rate here is ₹ 25,300/square yard, while the proposed rate is ₹ 45,000/square yard. The highest increase on agricultural land is proposed. Bajghera currently has a rate of ₹ 2 crore/acre, while the proposal is said to have ₹ 5 crore/acre (145% increase). Sirhaul currently has a price of ₹ 2.39 crore/acre, while the proposed rate is ₹ 5 crore/acre (108% increase).
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