Considering the fact that high sale and purchase of properties happen in Gurgaon, Haryana state government revises circle rate twice in year. Let’s not forget, that stamp duty receipt revenue is the largest in this city of the state, revealing the developed economic status of many residents. On the strict side, circle rates are considered a nuisance to property buyers as every sale and purchase will be pegged to the circle rates of the location. As it stands, the circle rate is the minimum selling price fixed by the state government, and no property selling price can be less than the circle rate that is set for that area. With the fast increase in demand of population in Gurgaon, coupled with sharp increase in demand for sale and purchase of residential houses, such units are expected to witness a sharper increase than what is applicable for the commercial units.
How Circle Rates Determine the Value of a Property
An increase in circle rates, however, has raised hopes among investors looking for appreciation in property value. Circle rates (sometimes called collector rates) are the minimum values of the property that are set by the authorities under the law in order to regulate the sale price of the property. Any increase in circle rates may have a knock-on effect on the real estate market, including the level of real estate prices and the movement of the market. Property experts in India have largely attributed the rise in circle rates in Gurgaon not just to increase in real estate prices but also a shining example of what Gurgaon has enjoyed for the last three to four decades being endowed with great infrastructure and openess to the national airport and the capital city of Delhi.
What’s in Store for Investors in the Real Estate
For real estate investors, the rise in property prices is a positive in terms of appreciated value and expected returns on investments. On the one hand, those who already have properties might enjoy a surge in their property’s value, but on the other, new investors might find their investment plans disrupted owing to the shifts in the forces of demand and supply. An increase in collector rates may affect home buyers’ budgets and plans for registration charges of properties because these charges are likely to rise. But what effect the increase in circle rates will have on market forces and the real estate market structure is yet to be seen, establishing echo for the need for all those involved to be aware and responsive to the changing scenario. As things are as they are, the real estate sector within the district will face a myriad of opportunities alongside challenges hence the need for all the players to be strategic about their operations.
Gurgaon: The Economic Hub of Haryana
Gurgaon being the most revenue producing city is regarded as the economical capital of the state hence it is a region with high potential in real estate. To put it in better perspective, such an urban zone of potentially high significance in the country is indeed known overwhelmingly for its real estate holdings. Real estate developers such as Signature Global and others have tirelessly worked to transform this city into a beautiful space. To a great extent, the real estate regulatory authority has systematized this industry. Homebuyers can safely make their investments and this trust is there because of credible promoters like Signature Global. Gurgaon has certainly turned out to be a ‘dream location’ for living as well as for investment.
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