The sky rocketing residential prices in Gurgaon have led to slowdown in real estate, with housing sales declining by 28 percent YoY in the first quarter of 2025. Considering this, Gurgaon administration has put on hold the proposed hike in circle rates from April 2025, in order to revive residential real estate. Prominent industry stakeholders speak about the impact of freeze on circle rates and the road ahead for residential real estate in Gurgaon.
Shalin Raina, MD-Residential, Cushman & Wakefield
The freeze on circle rates will help stabilise buyer sentiment especially in the mid and premium segments where affordability has become a growing concern. Especially as a 10-30% hike in circle rates carried out in December 2024, coupled with broader price pressures, contributed to slowdown in residential sales.
However, Gurgaon remains a key real estate market with strong fundamentals of commercial growth, infra pipeline and evolving urban ecosystem continues to attract both end-users. Further, rate cuts amidst declining inflation and more targeted offerings from developers will have a positive impact on the growth of the residential market in Gurgaon.
Ashwinder R Singh, Chairman, CII Real Estate Committee & Vice Chairman BCD Group
Gurgaon administration has frozen the circle rates as it sensed that the recent surge in prices was abnormal. It is a practical decision to prevent the market from overheating after the earlier sharp hike in circle rates.This will help ease buying sentiment towards a steady growth.
While New Gurgaon and other emerging sectors will continue to draw genuine buyers and investors ,Gurgaon real estate should now move towards more sustainable single-digit appreciation.
Samir Jasuja, Founder & CEO, PropEquity
The decision against any further hike in circle rates in Gurgaon is a sensible decision as property prices in the city had seen a hike of 200 percent in the last five years though circle rates are still 30 percent lower than the market rates. Together with this, home launches in Gurgaon have been of abnormally big sizes of average 2600 sq ft, compared to other cities.
Going forward property prices are set to stabilize as we will see developers coming up with reduced sizes of homes that will bring down the ticket price. This price stabilisation together with increase in supply should see demand in residential real estate in Gurgaon.
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