Table of Contents
- What are collector rates?
- Circle rate Gurgaon 2022
- All about circle rates in Gurgaon
- Circle rate in key sectors of Gurgaon
- Circle rate in HUDA Sector
- Circle rate for plots in licensed colonies
- Circle rate in multi-storey group housing by builder’s floor
- Difference between circle rate and market rate
- Stamp duty and registration charge in Gurgaon
- How to calculate stamp duty based on circle rate?
- Stamp duty calculation example
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.
“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.
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.
See also: 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.
See also: 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 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.
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.
|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.
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.