Gurugram Market in Jeopardy

Gurugram to see 10-30% increase in circle rates from Dec 1, property registration may become expensive

“The current hike in rates will further increase the overall cost of property acquisition for homebuyers. Therefore, the hike may have some impact on the sales in the near future. Any sort of hike - be it interest rates, circle rates or basic property cost - directly impacts buyers,” as per Santhosh Kumar, Vice Chairman - ANAROCK Group.

Mohit Jain, Managing Director, Krisumi Corporation, is of the view that the real estate sector has been performing well, with various ancillary industries relying on it to drive overall economic growth. A robust real estate market is crucial for strengthening the economy. However, a hike in circle rates could discourage buyers from investing in properties, potentially slowing the sector's momentum.

“At this juncture, an upward revision of circle rates may not be the most appropriate course of action. However, the decision may not lead to any substantial impact on the property market which continues to remain strong,” he added.

Others are of the view that the circle rate hike is unlikely to have a significant impact on Gurugram's real estate market. "Gurugram’s real estate sector, which continues to thrive on strong fundamentals such as high demand, rapid infrastructure development, and rising incomes,” said Pradeep Aggarwal, founder & Chairman, Signature Global (India) Ltd.

"Prime areas like Dwarka Expressway, and Southern Peripheral Road are poised to maintain robust demand due to limited supply and sustained investor confidence. However, given the pivotal role of the real estate sector in driving economic growth and job creation, a balanced approach to policy changes, such as circle rate revisions, would ensure continued momentum and long-term sustainability,"