Buying a dream home or commercial space in Gurgaon is no longer as expensive as it used to be. The district administration has slashed circle rates or collector rates by 15 per cent for a few segments for the financial year 2016-17.
The decision, according to official sources, has been taken in view of the sluggish real estate market, for which the proposal was sent in February this year.
Circle rate is the minimum value at which sale or transfer of a plot, built-up-house, apartment, commercial property or land takes place. However, a few societies are kept out of the purview of the reduction, which will be applicable to sector area, private colonies and old Gurgoan.
A committee, headed by Deputy Commissioner TL Satya Prakash and comprising revenue department officials, recommended the reduction in the circle rates to Divisional Commissioner D Suresh. Once the proposal was approved by him, it was jubilation for all those who have purchased properties in the city. The revised rates will come into effect from June 27.
For Sector 58 to Sector 113 (except Sector 67), the circle rates of residential property have been reduced from Rs 30,000 per sq yard to Rs 25,500 per sq yard, and the commercial rates have been reduced from Rs 1 lakh to Rs 85,000 per sq yard. The residential circle rates of all the eight housing board colonies have been slashed from Rs 3,800 per sq yard to Rs 3,250 per sq yard, and the commercial rates have been slashed from Rs 8,800 per sq yard to Rs 7,450 per sq yard. All the industrial areas will have circle rates reduced by 15 per cent.
The group housing cooperative societies in the city will now have circle rates reduced from Rs 3,600 per sq yard to Rs 3,060 per sq yard and the floor rates of HUDA have been reduced to Rs 3,825 per sq yard from Rs 4,500 per sq yard.
There has been no change in circle rates for 2014-15 and 2015-16 due to the bleak real estate market scenario. The properties are registered in the revenue records on the basis of circle rates. A buyer pays stamp duty to the revenue department on the basis of the circle rates. The circle rates are for commercial and residential properties and agricultural land.
According to the Gurgaon administration report, the property circle rate was kept static in the past two financial years 2014-15 and 2015-16, but this approach failed to raise the homebuyers’ hopes.
Understanding circle rate and market rate
Circle rate is the minimum price at which the transfer or sale of any kind of a property takes place. These rates are fixed by the state government and are reviewed from time to time according to market statistics. The circle rates may vary within cities in the same state, depending upon the property rates of that locality.
Impact on real estate transaction
Property circle rate is the base value on which state government collects stamp duty and registration fee on the property being bought or sold. Apart from stamp duty, government collects 1 per cent of the total cost of the property as registration fee.
Circle rates for different parts of the city:
|
Area |
Residential |
Revised |
Commercial |
Revised |
|
Old Gurgaon |
55,000 |
46,750 |
95,000 |
80,750 |
|
HUDA sector 14, 15, 17, 27, 28, 30, 31, 42, 43 |
50,000 |
42,500 |
1,65,000 |
1,40,250 |
|
HUDA sector 21, 22, 22A, 23, 23A, 45-57 |
38,000 |
37,400 |
1,65,000 |
1,40,250 |
|
DLF I, Sushant lok I |
77,000 |
65,450 |
1,65,000 |
1,40,250 |
|
DLF 3, Media Centre |
66,000 |
56,100 |
1,65,000 |
1,40,250 |
|
Malibu Town, Uppal South-end, Sushant Lok II III, Palam Vihar |
55,000 |
42,500 |
1,40,000 |
1,19,000 |
