Circle rates reduced in Gurgaon for the first time

The prolonged slump in the real estate market has prompted the Gurgaon administration to reduce the circle or collector rates. With effect from Monday midnight, the circle rates have been brought down by 15 per cent across all segments. Gurgaon, which has been the hottest real estate market in India for last one and half decades, has witnessed the cut in the circle rate for the first time in a decade.

The reduction in circle rates was recommended by a district level committee headed by deputy commissioner TL Satyaprakash in April this year.

“We had sent the proposal to reduce circle rates by 15% in the month of April taking into account the slowdown. The proposal has been approved by the government and new rates will be effective from midnight today,” Satyaprakash was quoted as saying by a leading national daily.

In the past two years, a substantial source of government revenue – the registration fees of property – has seen decline, following which the decision has been taken.

The circle rate in DLF Phase 1 was `77,000 per square feet and now after the reduction, it has come down to `65,450. Similarly, in DLF phase II,III, IV, Nirvana and South City 1, the circle rate now stands at `61,200, while in DLF phase III, the reduction is almost `10,000 at current rate of `56,100.

Circle rates in Huda sectors 14, 15, 17, 27, 28, 30, 31, 42, 43 have come down from `50,000 to `42,500 per square yard. Different sectors of Old Gurgaon have received a reduction of almost `5,000 to 8,000.