The decision to hike circle rate by up to 90% by Gurgaon authorities will have a negative impact on the real estate sector and hurt the recovery process, real estate developers and property consultants said.

The Gurgaon administration decided to increase the circle rate by up to 90% at some of the posh localities of the city from Thursday.

 For example, circle rates at DLF’s Camellias, Magnolias and Aralias, one of the costliest condominiums in the country, has been raised from Rs 20,000 per sq ft to Rs 25,000 per sq ft.

“This will have a negative impact on developers who want to reduce their price and clear their unsold inventory,” said Ramesh Nair, real estate expert and former CEO of JLL India. “This upward revision would also pinch the home buyer as the developer would pass on the increased stamp duty to the home buyer.”

The developers say the positive sentiments seen across the country over the last six months in the residential sector has helped increase sales velocity but not had any major upward price increase in many markets.

“It will definitely dampen demand, which has gradually started picking up steam since the last quarter of 2020,” said Rahul Purohit, head-India sales at Square Yards.

Experts say the state government should have avoided this decision.

The sector has witnessed the positive impact of slashed stamp duty charges in Maharashtra on the property markets of Mumbai and Pune, which suggest that the state government’s decisions have a direct impact on the sector.

“We request the administration to deliberate on the ways to help the realestate sector in the city. The increased circle rates will force the buyers to go into the shell,which will affect the revival,” said Achal Raina, COO, Raheja Developers.


According to Anubhav Jain, CEO of Silvergladesgroup, real estate market conditions are not conducive to absorb the blow of increase in the circle rates at this juncture when the country is witnessing the second wave of Covid crisis.

“At this stage, the government should be rolling out measures like stamp duty waivers to boost transactions and improve state revenue collections, like Maharashtra has done,”  Jain said.

 Circle rate at DLF’s Carlton and Crest has been increased from Rs 8,000 per sq ft to Rs 15,000 and Rs 12,000, respectively.


Also, circle rates for builder floors in licensed colonies have been raised from Rs 5,500 per sq ft to Rs 6,500 per sq ft, which is likely to impact the pricing of independent floors in the city.

“The current decision will dent the real estate market, which is in the revival mode after the Covid situation. In all our dealings with the buyers,we have concluded that they are looking for respite,” said Sanjeev Arora, director at 360 Realtors.

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“This will have a negative impact on developers who want to reduce their price and clear their unsold inventory,” said Ramesh Nair, real estate expert and former CEO of JLL India. “This upward revision would also pinch the home buyer as the developer would pass on the increased stamp duty to the home buyer.”


The Gurgaon administration decided to increase the circle rate by up to 90% at some of the posh localities of the city from Thursday.

For example, circle rates at DLF’s Camellias, Magnolias and Aralias, one of the costliest condominiums in the country, has been raised from  ..