Gurgaon, which is one of the biggest real estate markets in North India is going to see a sharp rise in property prices. The reason for this rise is further written in this blog. The reason of this unbelievable real estate price hike in Gurgaon is due to the proposed increase in collector rates.
This hike will be a consequence of a proposal presented by the district administration for the upcoming year 2024. The proposal has also given an option to register objections by 7th December 2023, hence the concerned people can use this right. The district administration has released the hikes in the collector rates for both urban and rural areas on its website.
Further Process of Price Hike
District Revenue Commissioner, Poonam Babbar affirmed that all the objections and suggestions on the proposal will be properly analysed. After analysing the complaints thoroughly the proposal will be sent to the state government which will be taking the final call. Once the proposal is received by the government after being properly analysed by a group of committees, the state government will form a committee as well. This committee will look into the matter deeply and send the document back to the district administration. Further process will take place for real estate price hike in Gurugram.
The local government has recommended significant changes in land prices in Badshahpur. They propose raising the cost of agricultural and business land by 40 to 80 percent. In Farrukhnagar, there’s a suggested increase of 87 percent for agricultural land and 35 percent for commercial properties.
Similarly, in the Wazirabad tehsil area, they are considering to hike the prices of residential and commercial land by 61 to 70 percent. These proposed changes indicate a considerable rise in land values in these areas, reflecting a potential shift in the local real estate market.
What is Collector Rate, how its related to Real Estate Price Hike in Gurgaon?
A collector rate is the minimum value at which the sale of a property is recorded. The purpose to have a collector rate is taxation purposes by the government. This rate is determined by the local authorities. Collector rate represents the base value below which the property cannot be registered during a sale. Collector rates help to prevent undervaluation of properties during transactions. It ensures that property transactions are assessed at a fair market value for the purpose of taxation. These rates vary from region to region and are periodically revised by authorities. The main purpose of revisions is to comply with the real estate market.