Almost two months before the next financial year 2018-19, the district administration of Gurgaon has revised its circle rates and the same will come into effect on Monday (Feb. 12).

The revised rates will be in force until March 31, 2018. The district administration said the government will revise the circle rate afresh in April. In total, the circle rates will be revised twice a year to generate revenue, officials said.

Buying a dream house or an office in the city is likely to cost more after the revision as the rates have been increased across all segments for rest of the 2017-18 financial year.

A committee headed by the deputy commissioner and comprising revenue department officials recommended an increase in the circle rates.

In licensed group housing societies (sectors 1-57), the circle rate has been increased by Rs700 per square feet (sqft) to Rs5,000/sqft. It was earlier Rs4,300/sqft.

The circle rates have been hiked the highest in residential areas of Aralias and Ambience Island — from Rs6,000/sqft to Rs10,000/sqft.

In DLF-1 and Sushant Lok-1, the residential circle rate has remained unchanged, at Rs. 65,000 per square yard (sqyd), while in DLF-2, DLF-4 and South City-1, the residential circle rate has been revised from Rs. 61,200/sqyd to Rs65,000/sqyd.

District revenue officer (DRO) Hariom Atri said, “Unlike old trend to revise circle rate in percentages, the administration has revised circle rate area-wise. The committee of officials recommended an increase of circle rates area-wise, in terms of rupees, such from Rs500 to Rs1,500. The revised circle rates will remain effective from February 12 to March 31, 2018. The government will revise it again in the next financial year. The government has decided to revise circle rates twice a financial year. The major increase can be seen in commercial circle rates, as opposed to residential.”

Collector or circle rate is the minimum price at which a property is registered when being transferred and it is a major source of revenue for the government, in terms of stamp duty.

In the commercial category, the highest increase in circle rate has been from Rs1,40,250/sqyd to Rs1,50,000/sqyd in DLF-3, the area which falls between Delhi-Gurgaon Expressway and MG Road.

Pravin Jain, the president of National Real Estate Development Council (Naredco), said, “We have not seen the revised circle rate yet. We, however, expect it to be on a par with market rates so that businesses do not get affected.”

The district administration has revised circle rate in tehsil Gurgaon from Rs14,800/sqyd to Rs17,000/sqydfor residential areas.

Chief Minister Manohar Lal Khattar had asked the Gurgaon administration to revise circle rate twice in a year. “We are implementing CM’s order,” said Vinay Pratap Singh, deputy commissioner (DC), Gurgaon.

Usually, the circle rates are revised every financial year on an average rate of 10-15% but the rates for 2015-16 were maintained the same as 2014-15 rates. In 2016-17, the district administration proposed a 15% reduction in circle rates due to the slowdown in the realty sector.