Circle Rate in Gurgaon

The circle rate is essentially the lowest rate that a property can be registered at. This rate is decided on a locality basis. Hence it can vary between states and cities, as well as within cities. This way, the government is able to regulate the sale of property in order to calculate and collect the appropriate registration fees, which is a prime source of income for the authorities.

Current Circle Rate in Gurgaon 2022

The circle rate in Gurgaon for some key sectors is mentioned in the table below.

The circle rate in Gurgaon for properties in the form of multi-storey buildings is listed in the table below.

 For properties in the HUDA sector, the current circle rate in Gurgaon is as follows :

 Current circle rate in Gurgaon for plots that are licenced in Gurgaon colonies are as follows :

 Calculation of Property Value in Gurgaon Using Circle Rate for Stamp Duty Payment

Here is how to do the calculation for the circle rate in Gurgaon.

First, you need to ascertain the property value, which will be determined based on the type of property.

1. For Homes built on plots of land - The circle Rate is calculated based on the plot area being multiplied with the circle rate, with the carpet area*minimum construction cost being added on top.

2. For Builder Floors - The Carpet Area is multiplied by the circle rate.

3. For Apartments - Once again, the carpet area is multiplied by the circle rate.

An example of circle rate in Gurgaon calculation.

If a buyer and seller make an agreement to buy/sell property worth Rs. 1 crore, and the Stamp Duty is 4%, and the registration fee is 1%, then the total fees owed by the transactors is Rs. 5 Lakhs.

However, if the circle rate was lower, this property valuation could be brought down, causing a loss for the authorities. For example, if the buyer and seller registered the property for only Rs. 30 Lakhs and paid the remaining Rs. 70 Lakhs in cash/unofficially, then the fees collected by the registrar's office will only be Rs. 1.5 Lakhs, which would mean that the authorities would suffer a loss of Rs.3.5 Lakhs.

As a result, the property value upon time of registration is always calculated based on the current circle rate in Gurgaon.

Factors Affecting Circle Rates in Gurgaon

Now that we understand the circle rate in Gurgaon , we can aim to understand which factors affect the current circle rate in Gurgaon.

Local authorities put Circle Rates in place on a locality-wide basis. Setting the circle rate is essentially gauging the minimum value of the property. Therefore, any factors that affect the price of a property will in turn, affect the circle rate as well.

For instance, for properties that are located in city centers with close proximity to business hubs and other public landmarks such as metro stations, the circle rate is likely to be high as the aforementioned factors will drive up the price of the property. If the property is in a more remote area that is still not that well connected to the important zones of the city, the property is likely to have a lower value, and thus, the circle rate reduces as well.

The circle rate in Gurgaon is essentially a way for the government to regulate the registration of properties, preventing gross undervaluing of properties in order to save on registration fees. These circle rates are changed on a routine basis, though they are likely to lag behind market rates as market rates tend to be much more dynamic in nature.

Here is a list of some of the factors that affect the circle rate in Gurgaon, which you can keep in mind in case you are ever buying or selling property.

• Proximity to train/bus/metro stations.

• Proximity to city centre/business hubs

• Tier of City that the property is located in

• Surrounding amenities such as gyms, malls, theatres etc.

  Conclusion 

  Purchasing property is an expensive ordeal, and in addition to paying the value of the property, you must necessarily also pay the requisite stamp duty charges, as well as the registration fees. Registration fees are ascertained on the basis of the prevailing circle rates applicable in the area where you wish to purchase the said property. Additionally, you can apply for a housing loan through the Bajaj Markets platform, where you can avail of home loans at lucrative rates. You can also check your Home Loan Eligibility on the website. Visit the Bajaj Markets today!