The district administration has declared rescript of circle rates in Gurugram since an interval of four years, to be enforced from Monday, February 12, overturning a tendency where circle rates had stayed static in 2014-15 and 2015-16, prior to being deflated by 5-10% across the last two years, due to depression in the realty sector. Real estate agents consider the mounting revision is a sign of resurgence of the sector.
The revised circle estimates have segregated the city into different zones. Each sector or colony has unique rates and for the first time, streets like Golf Course Road, MG Road, Delhi-Gurugram expressway and Sohna road have been classified as individual circles with comparable rates.
Circle rates for regions like Ambience Island and Aralias have leapt up, while the have stayed generally unaltered in areas such as Ardee City, South City and Mayfield Gardens. Rates have risen in rural areas interior of city limits, on the other hand, prices of apartments and separate floors in new sectors have observed a fringe change. Circle rates of business holdings have risen drastically all through the city.
“For the first time, circle rates will be applicable for as many as 15 colonies, which have been regularized and brought under MCG, and now properties in these areas can be registered,” said district revenue officer (DRO) Hari Om Attri.
He further said that the regime has attempted to streamline the prices of properties in various parts of the city. “Earlier, some adjoining sectors had huge difference in circle rates. We have tried to bring rates of adjoining areas on a par,” said Attri.
“After years of slump and radical reforms like demonetization and RERA, the real estate market is in revival mode. People have started buying houses and we’re expecting a rise in demand,” said Rahul Singla, director, Mapsko Group. Sumit Berry, MD of BDI Group, said that inexpensive housing will be the new dawn in in the realty sector. “Demand for affordable housing is expected to increase, as more and more end-users are buying homes,” said Berry.
To readjust real estate and land rates in urban and rural areas with the market rates, the Haryana government in December 2017 had tried to make aggregator rates two times in a financial year. “Most likely, the next rate revision will happen mid-year,” said the functionary, adding that the move was initiated to ascertain there is no significant disconnect between market rates of properties and those of the collector.
Collector or circle rate is the least rate at which a land holding is logged at the time of being shifted and stamp duty from it is a primary source of proceeds for the government.
Previously, these rates were changed once a year, but specialists say that a stable lag in the realty market has constrained the government to tweak levies on real estate.
High-level administrators in the revenue division and department of town and country planning said that this action comes amidst indications of restoration in the market. There is an upsurge in marketing of plots, ready-to-move-in homes and built-up houses, due to which, the government wishes circle rates to be compatible with market rates.