Circle rate Gurgaon: Hike in collector rates in 2022 to increase property cost

[] The decision to increase the collector rates will primarily push up values of independent premium properties in some upscale areas..

Rates of property in Gurgaon are set to increase with the proposed circle rate Gurgaon hike by the district administration coming into effect from January 10,  2022. Officials say the Gurgaon circle rate hike has been implemented in areas where demand for property has shown tremendous growth and in areas where there is a difference in market price and circle rates of properties.

You are reading: Circle rate Gurgaon: Hike in collector rates in 2022 to increase property cost

“The objective (of the circle rate hike) was to rationalise rates in tune with prevailing market rates as the difference had become too high. In several cases, rates had not been revised in the last two years,” said Yash Garg, deputy commissioner, Gurgaon.

What are collector rates?

Collector rate is the minimum value below which a property cannot be registered in government’s records. Collector rates are also known as circle rate, guidance vale, ready reckoner rates, etc. As cities are vast and the value of one area may be quite different from the value of another, collector rates vary from locality to locality.

Circle rate Gurgaon 2022

Circle rate Gurgaon have been hiked for housing projects located across Golf Course Road, Golf Course Extension Road, Sohna Road and Dwarka Expressway. The rate of increase ranges between 10% and 30%. On the other hand, collector rates have also been hiked by up to 66% in the Gurgaon tehsil, by 5%-10% in Wazirabad tehsil and up to 38% in Manesar tehsil. In municipal areas, circle rates have been revised by an average rate of 8%-10%. Collector rates rates for the HSVP sectors have been hiked by 5%-10% in Gurugram tehsil, 10%-12% in Badshapur and 10%-15% in Wazirabad.

The circle rates for Golf Course Road have been revised for The Verandas, Palm Springs, The Summit, La Lagune, Sun City, Central Park and other similar projects from Rs 1,500 per sq ft to Rs 2,500 per sq ft. The circle rate of properties in the Ambience Group has witnessed a hike of Rs 500 per sq ft.

For plots in Sushant Lok-1 and DLF Phase-1, circle rates have been hiked from Rs 77,000 to Rs 85,000 per sq yard. For DLF Phase-2, DLF Phase-4 and South City-1, collector rates have been increased from Rs 72,000 per sq yard to Rs 85,000 per sq yard. For DLF Phase-3, rates have been hiked from Rs 66,000 per sq yard to Rs 72,000 per sq yard. For DLF Phase-5, collector rates are now set at Rs 90,000 per sq yard as against Rs 72,000 per sq yard.

For plots in sectors 58 to 64, Gurgaon collector rate has been hiked from Rs 3,000 per sq yard to Rs 36,000 per sq yard. The circle rate in sectors 104, 105, 106, 109, 110, 110A, 11 112, 113, 114, 115 has been increased from Rs 25,500 to Rs 30,000.

In 2021, the Gurgaon administration had proposed a hike in collector rates for the year 2021-2022 even as other states announced stamp duty rate cuts and circle rate reductions to offer a breather to the pandemic-battered real estate community.

Read also : Asian Development Bank to loan USD 150 million, for infrastructure in Bengal, north-east states

The state government’s decision to implement this hike would result in property values in certain areas undergoing nearly 80% appreciation, something the developer community in the state has termed disastrous for the housing market of Haryana that is already reeling under the impact of the Coronavirus pandemic-induced slowdown.

“High land acquisition cost caused by the hike in circle rates will put an additional burden on prospective home buyers in the form of higher stamp duty at the time of property registration,” said Pradeep Aggarwal, chairman, Signature Global.

All about circle rates in Gurgaon

Among the various expenses associated with property purchase are the stamp duty and registration charge that buyers have to pay, to get immovable assets transferred in their names in the government’s records. To calculate stamp duty, states determine the circle rates of properties, which vary from city to city and from area to area. In this article we discuss the Gurgaon circle rates. Note here that the circle rate, also known as the ready reckoner rate or collector rate, is a benchmark below which a property cannot be registered in India.

Also, the stamp duty is a certain percentage of the property value that the buyer has to pay to the district revenue department, at the time of registration. These charges vary from state to state and city to city and broadly range between 3% and 8% across the country. For women buyers, charges are mostly lower than the duty charged from men. In Delhi, for example, women buyers pay 4% as stamp duty, even though the charges for male buyers is 6% of the transaction value.

All about circle rates in Gurugram

[] Stamp duty rates in 20 cities

Circle rate in key sectors of Gurgaon

Sector Circle rate per sq yard
Sector 30 Rs 5,000
Sector 31-32A Rs 5,000
Sector 40 Rs 5,000
Sector 41 Rs 5,000
Sector 43 Rs 5,000
Sector 46 Rs 5,000
Sector 50 Rs 5,000
Sector 51 Rs 5,000
Sector 52 Rs 5,000
Sector 53 Rs 5,000
Sector 54 Rs 5,000
Sector 55 Rs 5,000
Sector 56 Rs 5,000
Sector 57 Rs 5,000
Sector 58 Rs 3,500
Sector 59 Rs 3,500
Sector 60 Rs 3,500
Sector 61 Rs 3,500
Sector 62 Rs 3,500
Sector 63 Rs 3,500

Click here to get the full list of circle rates in Gurugram, for 2022.

[] Price trends in Gurgaon

Circle rate in HUDA Sector

Locality Circle rate per sq yard
Sectors 42, 43 Rs 50,000
Sectors 14, 15, 16, 17, 4o Rs 45,000
Sector 38 Rs 40,000
Sectors 21, 22, 22A, 23, 23A Rs 35,000
Sectors 1, 2, 3, 3A, 4, 5, 6, 7, 12, 12A, 13 Rs 35,000
Sectors 18, 19, 20 NA
Sectors 25 NA
Sectors 104, 105, 106, 109, 110, 110A, 111, 112, 113, 114 Rs 30,000

Circle rate for plots in licensed colonies

Locality Circle rate per sq yard
DLF Phase II Rs 7,000
Palam Vihar Rs 6,600
License colonies in Sectors Rs 25,500

Circle rate in multi-storey group housing by builder’s floor

Locality Circle rate per sq yard
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 Rs 5,000
Sectors 104 to 115 Rs 3,000
Housing board colony Rs 38,00
DLF Colony Old Rs 54,000

Difference between circle rate and market rate

The rate at which a property is actually sold or expected to be sole in the market, is known as its market rate. In most cases, market prices of properties, especially in Gurugram, are much higher than the government-fixed rate. There are no limitations on registration of properties at a higher rate than the circle rate, while there are restrictions on registering the property at rates lower than the collector rate, even if you have been able to get the property for lower prices. The rule is that stamp duty and registration charges should be paid on the higher of the two values.

Read also : Yamuna water supply: SC summons chief secretaries of Delhi, Haryana

In case a buyer registers the property on a higher value, he would also have to pay higher stamp duty. In case the circle rate is higher than the market rate, you can appeal to the sub-registrar, to charge stamp duty and registration charges at market value. However, whether or not he decides to offer you a waiver, would be entirely his discretion.

Check out properties for sale in Gurgaon

Stamp duty and registration charge in Gurgaon

Based on the circle rate, authorities charge a stamp duty on property transactions. In Gurugram, the stamp duty rate for men and women are different. Rates also vary between areas that fall under the municipal limits and areas that are not under its purview.

Jurisdiction Men Women Joint
Areas under the municipal limit 7% 5% 6%
Areas outside of the municipal limit 5% 3% 4%

Unlike most states, buyers do not have to pay a flat 1% of the deal value as the registration charge for property registration in Gurgaon. The applicable rates vary, depending on the deal value.

Deal value Registration charge
Up to Rs 50,000 Rs 100
Rs 50,001 – Rs 1,00,000 Rs 1,000
Rs 5,00,001 – Rs 10,00,000 Rs 5,000
Rs 10,00,001 – Rs 20,00,000 Rs 10,000
Rs 20,00,001 – Rs 25,00,000 Rs 12,500
Above Rs 25 lakhs Rs 15,000

How to calculate stamp duty based on circle rate?

To arrive at the stamp duty to be paid for a property purchase, first calculate the carpet area of the flat/ apartment. In case of a plot, the entire size of the plot would act as the benchmark. You would now calculate the stamp duty value, by following the method below:

Property type Valuation method
Apartments and flats Carpet area x circle rate per sq yard
Builder floor Carpet area x circle rate per sq yard
Plot Plot area in sq yards x circle rate per sq yard
Homes built on plot Plot area in sq yards x circle rate per sq yard + carpet area per sq yard x minimum construction cost per sq yard

Stamp duty calculation example

Note that builders typically sell properties in terms of sq ft. Suppose that you have bought a house with a carpet area of 1,500 sq ft. This is equal to about 166 sq yards. Now, suppose you have brought the property in Sector 30 of Gurugram, an area where the circle rate currently is Rs 5,000. After multiplying the area with the per sq yard circle rate, you arrive at the stamp duty you will have to pay.

166 x 5,000 = Rs 8.30 lakhs

Considering the deal value of over Rs 25 lakhs, you will have to pay another Rs 15,000 as the registration charge.

[] Your guide to paying property tax in Gurugram


What is stamp duty?

Stamp duty is the charge buyers pay to the authorities, to get a property transferred in their names. Although the rates vary from state to state, stamp duty is typically between 3% and 8% in most Indian states. Rates are also lower for women buyers.

What is circle rate?

Circle rate is the government-fixed value below which a property cannot be registered.

What is the circle rate in Gurugram?

Circle rates in the city vary from area to area.

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Category: Lifestyle

Debora Berti

Università degli Studi di Firenze, IT

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