GURGAON: The Haryana government has decided not to increase circle rates in Gurgaon for 2015-16, hoping it will help revive activity in the realty market that has been flat for a while.
It's the first time in six years, since the 2009-10 fiscal, that circle rates — the minimum registration price of a property — has not been hiked. District revenue officer Ajit Singh said, "Circle rates are already quite high in urban areas. It was decided to keep the rate unchanged to invite more homebuyers to the city."
A committee comprising revenue department officials and headed by the deputy commissioner had recommended to the state government that circle rates in Gurgaon should not be increased. Usually, circle rates appreciate 10-15% every year.
Realty watchers said this would encourage people to invest in Gurgaon. Developers, too, welcomed the decision. Rajesh K Gouri, vice-president (marketing and sales), Homestead, said, "The real estate market is going through a sluggish phase. If circle rates were to be hiked, it would have further affected activity in this sector. This move will help the market recover. Increasing rates would have resulted in revenue gains but transactions would have come down. It would also result in buyers avoiding registrations."
The circle rate for agricultural land in some villages have been increased, the revenue officer said.