Gurgaon circle rates to double – What impact will this have on property?

Magicbricks.com moderator says: The district administration of Gurgaon has decided to revise its circle rates. The rates are expected to be doubled since the present circle rate is almost one-fourth of the market rate. This step is being taken with an intention to curb under-valuation of residential and commercial properties.

Though the district administration plans to increase the circle rates by almost 50% to bring it to par with the present market rates, there are those who feel this attempt may still not be able to restrict black money in real estate. As one property dealer points out that,  “the property rate per square yard for DLF-I was increased to Rs.15,000 from Rs.12,000 per/sq yard last year and though it’s good to have the circle rate at par with the market price, we know how impossible it is to curb black money transations.”

Do you think it is really impossible to restrict black money transaction even when the circle rates are increased by 50%? What kind of an impact will this have on demand for property in Gurgaon? Tell us about your views and comments on this proposed hike in circle rates.