Hike in circle rates seems to rise property prices in Gurgaon
Gurgaon- The district administration has increased the circle rates in Gurgaon by up to 15 percent, which is likely to pave way to a significant rise in the prices of properties and plots across residential, commercial and industrial areas.
The new rates would come into effect starting from April 1st. As per the new rates for the financial year 2013-14, value of up to 2 acres of land adjoining National Highway 8 and the Northern Peripheral Road (Dwarka expressway) will increase by 20 percent. And the value of up to two acres of land at Gurgaon-Sohna Road and Gurgaon-Pataudi Road will increase by 10 percent.
The revision of rates will surely result in tremendous rise in prices of agricultural land and properties in Gurgaon.
There are no changes made in the stamp duty rates on land less than 1,000 square yards, like in the previous year. Such land chunks will continue to be treated as residential land for stamp duty collection.
In case of prime residential plots in licensed colonies such as DLF City Phase 1 and Sushant Lok Phase 1, the circle rates have been hiked from Rs 65,000 per square yard to Rs 70,000 per square yard while the circle rates of commercial plots in these areas will be hiked from Rs 135,000 per square yard to Rs 150,000 per square yard.
The circle rates have been increased in the institutional and industrial areas as well.
A circle rate is the minimum rate at which a plot, independent house or flat in a particular area or locality can be valued. The circle rate differs for various categories of colonies. On the basis of available infrastructure and other parameters, the circle rates for sale and purchase of properties in a particular area are finalized.
In order to prevent buyers and sellers from paying less stamp duty by showing very low values of property deals, the government sets circle rates. Hike in circle rates lead to high cost of registration of properties as buyers need to spend more as stamp duty charges.
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