15% circle rate cut in Gurgaon

Q: The Gurgaon administration has proposed to cut circle rates of properties by 15% this year to help revive a inactive real estate market.

Vrinda, Gurgaon

31st May 2016

Property Tax in Gurgaon

circle rates

haryana government

circle rate cut in gurgaon

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Replies (3)

Real Estate market is evolving. Here the power is shifting from the sellers to buyers. The growth of the price has become very stable. and it is per for the investors and the buyers to invest in real estate. Property interest rate is also balanced. In Gurgaon, there are many builders come with the reasonable rate. Recently, I have invested a project, names Vipul Aarohan by Vipul Group. But the investor must be careful about the review of the builder on previous projects.

Stuti Singh, Gurgaon

7th June 2016

Comment

It is a good move by the Haryana Governement as market rates have come done in certain areas but circle rates are still high. It will really give some relief to the property buyers in Gurgaon. The circle rate cut will reduce overall cost as these rates are the basis for tax calculations.

Jeet Bhaskar, Delhi

31st May 2016

Comment

This circle rate cut will give relief to both developers and buyers. Developers were confident that investor sentiment would significantly improve with the rate reduction. It is seen that property prices have dropped over the past couple of years, creating a gap between the transaction value and circle rates. Buyers are forced to pay additional stamp duty and capital gains tax on the differential value as well. This results in an extra payout.

Krishna, Gurgaon

31st May 2016

Yes, in the previous two financial years - 2014-15 and 2015-16 - circle rates in the city were kept unchanged but failed to lift buyer sentiment. But if the Haryana government approves the proposal this time, it will be the first time in recent history that Gurgaon, a premium real estate market, will see the circle rate graph slip downward.

Jay, Delhi-NCR

31st May 2016

Comment

It is a good news Jay. Because some areas, existing circle rates are higher than current market rates of land and need to be rationalised. Circle rate is the minimum value at which sale or transfer of a plot, a built-up house, an apartment or a commercial property take place. Buyers also pay stamp duty according to the circle rate.

Krishna, Gurgaon

31st May 2016