Gurugram circle rate hike may price out low, mid-income buyers

The 10-30 per cent increase in circle rates across Gurugram could price out prospective buyers in the low-to-mid-income segments, said developers and market watchers, with the hike being the second such since December 2024.

- SANKET KOUL

The sudden increase in circle rates could further dampen subdued demand in the real estate market. Property prices have increased 67 per cent to ₹16,186 per square foot in Q2 of 2025 from ₹9,718 per square foot in Q2 of 2023, according to Magicbricks.

"The extent of these hikes warrants careful consideration, especially in Gurugram, where property prices have surged in recent years. This has priced out low-to-mid-income buyers and further increases in circle rates could escalate overall acquisition costs, placing an even greater financial strain on price-sensitive segments," said Kartikeya Sharma, associate principal partner at Square Yards.

"The steep rise comes at a time when consumer sentiment has only just begun to improve, following the RBI's three consecutive rate cuts totaling 100 basis points. The move could temporarily slow down the growing interest among buyers," said Vineet Nanda, director (sales & marketing) at Krisumi Corporation, which has projects spanning ₹2,000 crore worth of investments in Gurugram.