Circle Rates in Gurgaon: An Overview
Circle rates are an essential regulatory tool that establishes the minimum price at which properties can be bought or sold, as stipulated by the revenue department of the state government.
They not only impact transaction costs but also play a crucial role in guaranteeing fair market practices.
In this discussion, we will explore the complexities of circle rates in Gurgaon, revealing their importance and consequences for buyers, sellers, and investors in the ever-evolving real estate market of 2024.
What are Circle Rates?
Circle rates, which are also referred to as guidance values or ready reckoner rates, establish the minimum price at which a property can be bought or sold, as set by the revenue department of the state government.
These rates are critical in preventing the undervaluation of property values and serve as a foundation for calculating various charges, such as stamp duty and registration fees.
Latest News About Circle Rates in Gurugram
As per recent reports, Gurugram’s circle rates are expected to undergo significant changes.
The proposed revisions, ranging from 30-80% across various categories, aim to bring circle rates closer to the current market prices.
Additionally, it is dedicated to bridging the gap between mandated rates and actual market values, with substantial increases expected in popular areas such as Golf Course Road and MG Road.
Emerging localities such as Farrukh Nagar are also expected to experience significant hikes.
Current Circle Rates in Gurugram
Here’s an overview of the current circle rates in various sectors of Gurugram:
| Sector | Circle Rate per Square Ft |
| Sector 63 | Rs 3,500 |
| Sector 62 | Rs 3,500 |
| Sector 61 | Rs 3,500 |
| Sector 60 | Rs 3,500 |
| Sector 59 | Rs 3,500 |
| Sector 58 | Rs 3,500 |
| Sector 57 | Rs 5,000 |
| Sector 56 | Rs 5,000 |
| Sector 55 | Rs 5,000 |
| Sector 54 | Rs 5,000 |
| Sector 53 | Rs 5,000 |
| Sector 52 | Rs 5,000 |
| Sector 51 | Rs 5,000 |
| Sector 50 | Rs 5,000 |
| Sector 46 | Rs 5,000 |
| Sector 43 | Rs 5,000 |
| Sector 41 | Rs 5,000 |
| Sector 40 | Rs 5,000 |
| Sector 31 – 32A | Rs 5,000 |
| Sector 30 | Rs 5,000 |
Circle Rates for Plots in Licensed Colonies
For individuals considering plots in licensed colonies, here’s the circle rates for prominent localities:
| Locality | Circle Rate per Square Ft |
| Palam Vihar | INR 6,600 |
| DLF Phase II | INR 7,000 |
| License colonies in sectors | INR 2,830 |
Circle Rates for Multi-Storeyed Apartments
These are the circle rates for multi-storeyed apartments in Gurugram:
| Locality | Circle Rate per Square Ft |
| DLF Colony Old | INR 6,000 |
| Housing Board Colony | INR 3,800 |
| Sectors 104 to 115 | INR 3,000 |
| Sectors 1, 2, 3, 3A, 4, 5, 6, 7, 12, 12A, 13, 14, 15, 16, 17, 21,22, 22A, 23, 23A, 38, 40 42, 43 | INR 5,000 |
How to Check Circle Rates in Gurugram?
The steps to check circle rates for a selected locality in Gurugram are:
- Visit the official website of Gurugram administration at https://gurugram.gov.in/
- Locate the “Department” section on the homepage.
- Click on the “Revenue” option in the Department section.
- Select the desired locality for which you want to check the circle rates.
- The website should display the corresponding circle rates for that area.
- Check the circle rates, which may be listed per square foot or unit of land measurement, depending on the specific format provided on the website.
Calculating Property Value for Stamp Duty Payment
To calculate the property value in Gurgaon using the circle rate for stamp duty payment, you can follow these valuation methods based on the property type:
- For Apartments and Flats – Multiply the carpet area of the apartment or flat by the circle rate per square yard.
- For Builder Floors – Multiply the carpet area of the builder floor by the circle rate per square yard.
- For Plots – Multiply the plot area (in square yards) by the circle rate per square yard.
| Aspect | Circle Rates | Market Rates |
| Determined by | Government authorities | Supply and demand dynamics, location attractiveness, market trends |
| Purpose | Set minimum transaction value for property transactions | Reflect actual selling price in open market |
| Regulatory Nature | Mandated by government and legally binding | Not regulated; subject to market fluctuations |
| Impact on Transactions | Can affect stamp duty and registration costs; may not align with actual market value | Directly influence the selling price negotiated between buyers and sellers |
- For Home Built on Plot – Multiply the plot area per square yard and the minimum construction costs per square yard.
Difference Between Circle Rates and Market Rates
| Aspect | Market Value | Circle Rates |
| Determined by | Market forces and negotiations between buyers and sellers | Set by government authorities based on local factors and regulations |
| Nature | Dynamic and influenced by various factors such as demand, supply, location, and property condition | Fixed by government and periodically revised based on predetermined criteria |
| Purpose | Represents the actual selling price of the property | Minimum valuation mandated for property transactions by the government |
| Accuracy | May vary based on market conditions and negotiations | Provides a standardized benchmark for property transactions, may not always reflect current market trends |
| Usage | Used for determining the actual transaction price during property sale or purchase | Utilized for calculation of stamp duty, registration fees, and taxation purposes |
| Flexibility | Subject to negotiation and market trends | Less flexible, legally binding, and must be adhered to during property transactions |
And That’s It
A solid grasp of circle rates is crucial for all those involved in Gurugram’s real estate market.
These rates establish a minimum transaction value and promote fair practices.
It’s also important to distinguish between circle rates and market rates, as this knowledge can offer valuable guidance for navigating property transactions with ease and efficiency.
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