The property landscape in Gurgaon is bracing for a significant shift as the local administration has proposed a substantial revision of circle rates, a move that could make real estate transactions notably more expensive. The proposal suggests a considerable increase, with residential property rates potentially rising by up to 77% and agricultural land facing a staggering 145% hike. This adjustment is intended to align the government-mandated minimum property values with their prevailing market prices, a gap that has become particularly wide in prime residential areas and newly developed sectors.
This proposed rate hike will have a cascading effect across Gurgaon’s diverse property market, impacting everything from luxury apartments in high-end condominiums to residential plots in emerging neighborhoods. In established and sought-after localities such as DLF Phases I-V, South City, Suncity, Sushant Lok, and the upscale Golf Course Road, a 10-20% increase in circle rates is being considered. To put this in perspective, the circle rate for a high-end apartment in a prestigious complex like DLF’s Aralias, The Magnolias, or The Camellias could climb from ₹35,750 per square foot to ₹39,325 per square foot, reflecting a 10% increase.
The newer sectors along the Dwarka Expressway are also in for a significant adjustment, with a proposed hike of up to 62%. This could see the circle rate for residential plots jump from ₹40,000 to ₹65,000 per square yard. The most dramatic increase for residential plots is proposed for Gurgaon Gaon, where rates could soar by 77%, from ₹25,300 to ₹45,000 per square yard. However, the most substantial change is earmarked for agricultural land. In Bajghera, the proposed circle rate could see a phenomenal 145% increase, from ₹2 crore to ₹5 crore per acre, while in Sirhaul, a 108% increase is on the table, from ₹2.39 crore to ₹5 crore per acre.
The district administration is currently in a phase of public consultation, having invited objections and suggestions on the proposed rates until July 31. Following a review of the public’s feedback, the proposal will be forwarded to the state government for final approval. Should the government approve the revised rates, they are expected to be implemented within a month.
The proposal has generated a mixed response from real estate industry experts and prospective homebuyers. While many realtors concede that bringing circle rates closer to market values is a positive step towards greater transparency, they also voice concerns that such a drastic and sudden increase could negatively impact buyer sentiment and slow down the real estate market. A significant number of stakeholders believe that the timing of this proposed hike is inopportune, especially since property prices in Gurgaon are already at a high, making homeownership a challenge for a large portion of the population. Homebuyers and professionals working in the city are apprehensive that this continuous rise in property costs will not only make Gurgaon a less affordable place to live but could also have a detrimental effect on the city’s economic growth and industrial landscape.
This is not the first time that circle rates have been revised in Gurgaon. The last revision was in December 2024, when rates were increased by 10-30%. An earlier proposal by the revenue department to increase the rates in March 2025 was turned down by the Haryana government, a move that was welcomed by the real estate community as a measure to bolster buyer confidence.
The entire real estate ecosystem in Gurgaon is now keenly awaiting the government’s final decision on this matter. Whether the proposed rates will be implemented as they are or if they will be moderated based on the feedback received remains to be seen. What is clear, however, is that the final decision will play a pivotal role in shaping the future of property ownership in one of India’s most dynamic and important real estate markets.
Source :- ET
