Property in Gurgaon might become more affordable after the Haryana government’s decision to not increase the circle rates in the area. The state government is hoping that the move will help increase the demand for property in Gurgaon, which has been sluggish across the country.
Generally, circle rates of an area are hiked by around 10-15 per cent every year. For , these rates were hiked by 15 per cent last year. And presently, the circle rates in Gurgaon are already as high as Rs 22,000 per sq yd in some areas for residential property.
Positive Buying Sentiment: It was a strategic move by the state government to keep the circle rates unchanged in order to push the sales of property in Gurgaon. This move will help bring down the market price of property in Gurgaon, creating a positive market sentiment, which in turn, will give enough assurances to the buyers to go ahead and make investment.
The buyers will not have to await schemes or discounts from the builders to make a purchase decision.
Good Times ahead for Builders: With government taking steps to push property sales in Gurgaon, the time is right for builders to sell their unsold inventory and also start new projects if the demand rises further.
The real estate market had been affected by the slowdown in buyer sentiment. Large number of projects are still under construction in Gurgaon, including affordable units with a large number of 1BHK flats. But the actual unsold inventory is of the luxury apartments in Gurgaon, for which the area is known for.
Gurgaon experienced a drastic drop in sales of around 55 per cent in annual home units sold and even the new launches in the area went down by 68 per cent in 2014. All this together brought the unsold inventory in Gurgaon to stand at 22,300 units in 2015.
Improvement in the sales activity in Gurgaon is expected to be good driver for rates and activity in Noida and other areas, which take cue from Gurgaon.