Circle rates of properties across segments have been slashed by 3-8% in Gurugram, a premium real estate market, for the financial year of 2017-18.
Industry experts and government officials believe that the rate cut, the second in a row, will lead to a price correction that will help boost a sluggish market as more homebuyers will now be keen to invest in properties.
While the circle rates (government rates) were reduced by 10-15% in 2016-17, they were kept unchanged for two previous years (2014-15 and 2015-16) in the wake of a slump in the real estate sector.
Property prices have been going down as supply is more than the demand in Gurgaon. The rate cut will give a boost to the real estate market.
Though the rates have been slashed in major parts of the district, the same have been increased in some colonies located near Huda sectors by 3-5%.
While the rates have remained unchanged in most of Huda sectors, they have been reduced by 5% in sectors 10, 10A, 9 and 9A.
Similarly, DLF, Sushant Lok and other developers’ areas have seen no or slight changes in the rates while new sectors 58-115 have witnessed a 5% deduction.
The rates have been reduced by 3-5% in villages within the city limits, namely Gurgaon, Sarhaul, Moalehera, Nathupur, Sikanderpur Ghosi, Bajghera, Sarai Alawardi, Sukhrali and Chakkarpur.
On the other hand, the circle rates have been raised marginally (2-4%) in some colonies of Old Gurgaon, like Friends Colony, Gandhi Nagar, Hira Nagar, Jacubpura, Jawahar Nagar, Kirti Nagar, New Palam Vihar and Subhash Nagar, among others.
In Gurgaon tehshil, which covers most of the city, the rates have been reduced by 3-5%. The circle rates have been slashed by 3-7% in areas like Manesar, 3-8% in Sohna, 2-7% in Pataudi, 3-7% in Farrukhnagar, 3-5% in Kadipur.
Circle rates have been reduced by 3-8% in Badshahpur, Wazirabad and Harsru, where most of the new sectors are coming up.