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Gurgaon’s South City 1 has become the most expensive residential locality in Haryana, following the state government’s decision to revise collector rates from Friday. The new rate for properties in South City 1 has been set at Rs 90,000 per square yard, or Rs 1.07 lakh per square metre, up from the previous rate of Rs 82,000.
This is the second increase in collector rates in just eight months. The last revision came into effect on December 1, 2024. With the latest update, the hike in circle rates ranges between 10% and 50% across both urban and rural areas of Haryana.
Real estate dealers have expressed concerns that this sudden increase in circle rates may impact market sentiment and slow down transactions in the property market. However, according to an Indian Express report, a revenue official stated that the decision was based on a structured and thorough review. “The new collector rates are the result of a well-thought-out process, leaving little room for changes,” the official said.
The rate hike is not limited to South City 1. Nirvana Country has also seen a sharp rise, with the rate increasing from Rs 70,000 to Rs 80,000 per square yard. Sector 42 in Gurgaon, which includes premium properties such as DLF Camellias and residential developments along Golf Course Road, now has a revised rate of Rs 79,970 per square yard, up from Rs 72,700. In DLF Phase II, the circle rate has been raised to Rs 72,000, while DLF Phase III now stands at Rs 66,000 per square yard.
Despite these sharp increases in Gurgaon’s upscale localities, certain areas near the Southern Peripheral Road and Dwarka Expressway remain in the affordable range. Sector 95A, for instance, continues to be the least expensive area in Gurgaon, with a collector rate of just Rs 2,830 per square yard. Licensed colonies in Sectors 68 to 71 are not far behind, where the rate has been raised to Rs 4,800 per square yard. In Sectors 76 to 80, the rate is now Rs 5,000, and in Sectors 91 and 92, it stands at ₹5,600 per square yard. Sectors 81 to 84 now carry a rate of Rs 6,000 per square yard.
In Panchkula, the Mansa Devi Complex has also seen a steep increase in property valuation. Sectors 4, 5, and 6 in the area have emerged as the most expensive localities in the district, with collector rates touching Rs 99,000 per square metre, up from the earlier Rs 66,000.
The revised collector rates are expected to influence property prices, stamp duty, and registration fees across Haryana, especially in high-demand zones like Gurgaon and Panchkula.
Gurgaon Circle Rate Hike 2025: What Developers Say
Real estate developers in Gurgaon have offered mixed yet largely optimistic reactions to the Haryana government’s decision to revise circle rates across the city. While most acknowledge the move as a step toward market transparency and alignment with real valuations, some caution that the timing could temporarily impact buyer sentiment.
Pradeep Aggarwal, Founder & Chairman of Signature Global (India) Ltd., welcomed the proposed hike, stating that Gurugram’s real estate market is fundamentally strong and driven by end-users. “The proposed hike in circle rates, if implemented in a balanced manner, can enhance market transparency, improve buyer confidence, and align property valuations with ground realities,” he said.
Aggarwal added that for homebuyers, the revision could mean cleaner transactions and better financing opportunities, while the industry may benefit from more formalised growth, greater compliance, and increased investments in infrastructure. “Maintaining a stable and growth-oriented policy framework will be key to sustaining momentum—encouraging genuine homebuyers, fostering trust, and supporting the long-term vision of Gurugram as a model urban real estate market,” he added.
Vineet Nanda, director (sales & marketing) of Krisumi Corporation, said the hike clearly reflects the government’s intention to increase transparency and align property prices with actual market value. However, he pointed out that the steep increase comes at a delicate time when buyer sentiment is just recovering.
“The steep rise comes at a time when consumer sentiment has only just begun to improve, following the RBI’s three consecutive rate cuts totalling 100 basis points. This move could temporarily slow down the growing interest among buyers,” Nanda said. Nevertheless, he believes that long-term demand will remain strong, underpinned by Gurgaon’s infrastructure expansion, commercial growth, and investor interest.
Sumit Ranjan, chief operating officer of Roots Developers, lauded the government’s decision, calling it a move that bridges the gap between outdated valuations and real-time market conditions. “We welcome the Haryana government’s proposed circle rate hike of up to 145% in Gurugram, as it bridges the gap between outdated government valuations and robust market realities. This move ensures transparency, boosts state revenue, and reinforces Gurugram’s premium positioning,” Ranjan said.
He added that while there could be a short-term cost impact, the hike signals long-term confidence and benefits for developers and investors, especially in upscale and emerging sectors.
Aman Sharma, founder and managing director of Aarize Group, acknowledged the potential of the move but flagged concerns about its timing. “The proposed circle rate revision in Gurugram underscores the city’s real estate potential, but its timing — coinciding with the upcoming festive season — may momentarily affect buyer decisions,” he said.
Sharma stressed the need to strike a balance between aligning rates with market value and sustaining positive sentiment during high-demand periods. He added that sustained government focus on infrastructure, connectivity, and faster approvals will be essential to maintain the city’s momentum as a high-growth real estate destination.
Source : News 18
