In a major development for Noida’s real estate market, the Uttar Pradesh Revenue Department has proposed a significant hike in circle rates after a five-year freeze. The move, aimed at aligning circle rates with soaring property prices, could result in a 30% increase in residential property rates, according to officials.

30% Hike in Residential Circle Rates

The proposal, submitted by the Stamp and Registration Department to District Magistrate Manish Kumar Verma, recommends a 30% increase in circle rates for residential areas. Circle rates, which determine the minimum property valuation for stamp duty calculation, have remained unchanged since 2019. In the last five years, market prices have surged, creating a considerable gap between market and circle rates.

According to revenue department officials, this discrepancy has not only resulted in underreporting of property transactions but also caused a loss in government revenue. “We have submitted a proposal for a 30% hike in circle rates for residential areas, which is necessary to align these rates with current market values,” said Shashi Bhanu Mishra, Assistant Inspector-General, Registration, Gautam Budh Nagar.

Increases for Commercial, Industrial, and Agricultural Sectors

In addition to the 30% rise in residential areas, the proposal also recommends a 10% increase in circle rates for industrial, commercial, and IT plots, and a 15% hike for agricultural land. These changes are also part of the broader goal to bring circle rates closer to the market value.

In high-demand residential sectors, such as Sector 44, the current circle rate is ₹1.2 lakh per square metre, while Sector 15A stands at ₹1.15 lakh per square metre. However, actual transaction prices in these areas often exceed these figures by a large margin.

Review Process and Public Feedback

District Magistrate Manish Kumar Verma has confirmed that the proposal is currently under review. “We will publish the new rates for public feedback soon. Residents will have two weeks to submit their objections or suggestions before the final rates are notified,” Verma said.

This public feedback period is a crucial step, allowing residents and stakeholders to voice their concerns or support for the proposed changes. The final notification will be issued after considering public input.

Impact on Property Transactions

If the proposed revision is approved, property buyers in Noida will face increased transaction costs due to higher stamp duty. The stamp duty for property purchases is calculated based on the higher of two values—circle rates or land allotment rates—determined by Noida, Greater Noida, and Yamuna Expressway development authorities. These authorities typically revise their allotment rates once or twice a year, while circle rates have been stagnant since 2019.

The revised rates will directly impact sectors like Beta 1 and Gamma 2, where current residential plot rates hover around ₹37,000 per square metre, but actual property deals often surpass these figures.

Closing the Gap Between Market and Circle Rates

According to Mishra, Noida’s real estate market has rapidly expanded, with market values rising much faster than the circle rates. “The proposed revision will help correct this imbalance and bring the rates in line with real property values,” he added.

With the real estate market heating up and property values continuing to rise, the revision of circle rates is seen as a crucial step in ensuring fair taxation and curbing the underreporting of property transactions. The decision is expected to significantly impact both buyers and sellers in Noida’s booming real estate sector.

As Noida’s property market continues to grow, the revision of circle rates will have far-reaching consequences. While the proposed hikes aim to bring the rates on par with market values, the increased transaction costs will likely affect real estate activity in the region. All eyes are now on the public feedback period and the district administration’s final decision on the proposal.