Gautam Budh Nagar: Likely circle rate hike to hit homebuyers’ interest

Uttar Pradesh stamp and registration department is contemplating a hike in all segments particularly residential and agricultural land in the district, said officials

NOIDA: With the Gautam Budh Nagar administration likely to raise the circle rate -- at which a property buyer pays the stamp fee to the government-- from April 1, the step has left homebuyers worried.

The move, officials explained, aims to increase the circle rate at par with the “market rate” in view of the jump in the property cost in Noida, Greater Noida, and Yamuna Expressway region since the real estate prices have skyrocketed due to impact of the Noida International airport in Jewar region. (Sunil Ghosh/HT Photo)

Since the Noida, Greater Noida, and the Yamuna expressway industrial development authorities have increased the allotment rates – at which these authorities sell their property -- for all kinds of property, the Uttar Pradesh stamp and registration department is contemplating a hike in all segments particularly residential and agricultural land in the district, said officials.

The development has turned homebuyers a worried lot as they are yet to get the possession of their units for last many years.

“We, the homebuyers, are waiting for our homes for 12 years. Every revision in circle rate impacts our outflow towards stamp duty and registration which increases the financial load on us. The government should formulate a policy that in whichever year the property was purchased, the then prevailing circle rate will apply. At least homebuyers of stuck projects will have some relief or waivers on stamp duty,” said Ashish Mohan Gupta, president, JIL Real estate allottees welfare society.

The move, officials explained, aims to increase the circle rate at par with the “market rate” in view of the jump in the property cost in Noida, Greater Noida, and Yamuna Expressway region since the real estate prices have skyrocketed due to impact of the Noida International airport in Jewar region.

Another key reason to hike the circle rate is that it remained unchanged since 2019 due to COVID-19 lockdown which brought the property prices down before 2023, when the realty sector started witnessing rise in the property cost, said officials.

Sources said the circle rates may increase between 30 and 70% in Gautam Budh Nagar district. The residential circle rates may witness a rise up to 30% in Noida, and Greater Noida, and the circle rates for agricultural land may be raised up to 70% in Jewar region.

Gautam Budh Nagar’s district magistrate Manish Kumar Verma, however, said that they will announce the new rates only after proper procedure completes.

“If the review and details related with the circle rates are finalised, we will put the same into public domain for the feedback from the general public before we finalise the same. We will give 15 days to the public to submit their feedback and then will take a final call,” said Verma on Sunday.

If the revised rates are approved, property buyers will face higher stamp duty, resulting in an increase in overall transaction costs, said officials.

“If the circle rates are increased in Gautam Budh Nagar district then the administration should allow payment of stamp duty at old rates for those buyers who have not got the possession or delayed registry due to the fault of the realtors,” said Arun Chauhan, a buyer of Supertech Capetown residential project, Sector 74.