Property becomes expensive in GurugramImage Credit source: ai generated
Inflation has hit the hopes of people who are dreaming of building their own homes in Gurugram. Buying a house, shop or any land in the city is now going to be much more expensive than before. Actually, the government has increased the circle rates of the city drastically. This single decision has increased the prices of all types of properties, residential, commercial and industrial, by 15 to 75 percent. If you are also planning to invest in cyber city, then you will have to understand the mathematics of your budget again.
Why did prices suddenly increase so much?
For the last several years, a big trend was being seen, the actual price of the property in the market (market rate) was very high, but their value (circle rate) as per the government papers was very low. Because of this, the valuation of deals was being recorded low. Now the administration has eliminated this difference and brought the circle rates directly at par with the market price. These new rates have been fully implemented from April 1.
How is there a direct impact on the buyer’s pocket?
It is important for a common buyer to understand what circle rate is. This is the minimum government rate, below which no property can be legally bought or sold. When you buy a flat or land, you have to pay stamp duty and registration fees to the government based on this rate. Now that the base rate itself has increased to 75 percent, it is obvious that the cost of house registration will also start skyrocketing, which will directly affect your overall budget.
In which areas the pockets will be affected the most?
If you are looking for a home towards Golf Course Extension Road or Southern Peripheral Road (SPR), then the biggest impact of inflation has been seen there. Residential rates in Sectors 63, 63A, 64 and 67 of these high-profile corridors have directly jumped by 45 per cent. According to government data, the rate per square yard here has jumped from Rs 58,500 to Rs 84,825. Apart from this, a huge increase of up to 30 percent has been recorded in areas ranging from Sector 62, 65, 66 to 72. At the same time, in DLF Phase 5, which is considered the most expensive and premium in the city, there has been a historic increase of 75 percent in prices.
What is the reason for this huge demand?
In terms of property in North India, Gurugram is already sitting on the top in the list of most expensive cities. There are big offices of IT, finance and renowned multinational companies from all over the world in this city. Due to this expansion of companies and continuously improving infrastructure, the line of home buyers here is getting longer. The desire of professionals from India and abroad to settle here has created a very strong demand in the housing market, and this demand is now supporting these new, higher prices.
