GURGAON: Despite the district administration raising circle rates in Gurgaon by an average 10% on Friday, real estate experts in the city feel the hike is inadequate as the new rates are much lower than existing market rates.
Pointing to circle rates in prominent condominiums such as Aralias, Ambience Island and Unitech World Spa, an expert said the rate has been revised from the earlier Rs 4,500/sq ft to Rs 7,000/sq ft whereas the market price is somewhere around Rs 10,000/sq ft. In some cases, the expert added, it is as high as Rs 15,000/sq ft. Distinguishing them from other areas, circle rates in luxury condominiums were hiked by almost 70%. “We don’t think the realty market will see any decline in future. The market is already looking up. As circle rates near market rates, the sector will become more mature and properties will get more into the approach of salaried individuals. This will help in keeping a check on rotation of black money,” said Anckur Srivasttava, chairman, GenReal Property Advisers.
Any steep hike in stock markets is always followed by a corresponding rise in realty rates. “Every stock market rally is followed by a subsequent rise in realty rates. Considering financial markets are at their all-time high, the realty market is heading towards a historical high, too,” Srivasttava said.
Echoing similar sentiments, the owner of Raheja Developers, Navin Raheja, said the Gurgaon realty market will witness a hike of over 20% soon and the annual circle rate hike will not be a dampener. “We are getting a lot of customer queries of late. The market is looking up substantially and things will change for good in a month. We expect prices to increase by more than 20%,” he said.
“The commercial segment is a precursor to the overall trend across the spectrum. When there are a lot of deals fructifying in the commercial market, it means things are improving,” said Srivasttava.
Retail investors are, however, yet to get the drift. “The retail market is still in bad shape and I think the administration should have deferred the circle rate hike for some time until the market improved,” said Deepak Sharma, general manager of a real estate firm in the city.
Source: The Times Of India