Gautam Budh Nagar circle rate hike: What the proposed 20% to 70% increase means for homebuyers
The UP govt has also proposed a location-based charge: a 5% hike for properties near metro stations and a 7.5% increase for those along the expressway
For the first time in nine years, the Uttar Pradesh Stamp and Registration Department is considering a 20% to 70% increase in circle rates, set to take effect on April 1. The proposed hike for high-rise apartments in Noida is expected to be 20%, while Greater Noida may see an increase of up to 30%. Circle rates for agricultural land are also set to rise, with Jewar experiencing a 70% increase, Greater Noida rising by nearly 50%, and Noida by 40%.
This has raised concerns among homebuyers, many of whom have been grappling with increase in property prices and many have been waiting for possession of their properties for years, a report published in the Hindustan Times said.
Sources had told Hindustan Times that circle rates in Gautam Budh Nagar district could increase by 20% to 70%. Residential circle rates in Noida and Greater Noida may rise by up to 30%, while circle rates for agricultural land in the Jewar region could see an increase of up to 70%.
Gautam Budh Nagar’s district magistrate Manish Kumar Verma, however, had told the newspaper that they will announce the new rates only after proper procedure is completed. “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,” he had said.
Impact on homebuyers
As circle rates rise, the stamp duty payable on property transactions will also increase, leading to higher costs for buyers. This could further strain the budget of potential homeowners, especially those already dealing with escalating property prices.
Having said that, the primary beneficiaries of this revision will be farmers, as it will enable them to receive fair compensation for their land during acquisitions under the law. This focus aligns with the government's vision of advancing development projects across the state, according to a report published in HT.
Circle rates for agricultural land in the Jewar region could see an increase of up to 70%
The proposed circle rate hike for Jewar is expected to be around 70% on account of the upcoming Noida International airport which is likely to open in May this year.
According to a report published in TOI, if an increase of 20% is implemented for Noida’s multi-storey buildings then the circle rate for a flat in sectors such as 14A, 15A and 44 where the current rates are between ₹1.03 lakh to ₹1.2 lakh per sq m, depending on the width of the road will be hiked to ₹1.2 lakh per sq m to ₹1.4 lakh per sq m.
Similarly, in Greater Noida, the current circle rate for apartments located in sectors such as Alpha, Gamma 1, 2 and Beta 1, 2 are between ₹28000 to 28500 per sq m. Once the rates are revised, the rates will range from ₹36400 per sq m to ₹37050 per sq m, the report said.
For non-agricultural land in Noida, a hike of 20% has been proposed and for Greater Noida and Greater Noida West, an increase of 25% has been proposed. Agricultural land of all revenue villages in Noida may witness a 40% increase while Greater Noida will see a 50% hike, the report said.
The government has also proposed increasing the rates for developed residential plots allotted to farmers in exchange for land acquired by development authorities. In Jewar where the Noida International Airport is coming up, the circle rates may go up by 70% for agricultural land. Commercial plots and properties in Jewar may see a circle rate increase of 18-20%, the TOI report said.
What are circle rates
A circle rate, or ready reckoner rate, is the minimum price at which the property sale is registered. This rate is determined by the state government and is generally reviewed to ensure that it is in line with the market rate. In the event of a property being bought or sold, the stamp duty and the registration charges are calculated based on the circle rate or the actual value of the property, whichever is higher.
Circle rates are revised every year and implemented from August every year but the Uttar Pradesh government has not increased the rates for the district since the last nine years.
District Magistrates are responsible for setting the minimum price per hectare or square meter for agricultural and non-agricultural land in August each year.
Why are circle rates likely to go up?
Officials told Hindustan Times that the move aims to align the circle rate with the ‘market rate,’ considering the sharp rise in property prices across Noida, Greater Noida, and the Yamuna Expressway region, driven by the development of the Noida International Airport in the Jewar area. Another reason for the hike is that the circle rate has remained unchanged since 2019 due to the impact of COVID-19.
However, homebuyers, particularly those in delayed projects, have expressed concerns and are calling for relief or waivers on stamp duty to ease their financial burden.
The move, officials explained to Hindustan Times, 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.
Authorities increased allotment rates in 2024
The circle rates that are issued by the Gautam Budh Nagar district administration are different from the circle rates issued by development authorities. The latter had hiked increased circle rates for the plots last year.
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, the Hindustan Times report quoted officials as saying.
Homebuyers a worried lot
The development has turned homebuyers a worried lot as some of them are yet to get the possession of their units for the last many years.
“We, the homebuyers, have been 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 home buyers of stuck projects will have some relief or waivers on stamp duty,” Ashish Mohan Gupta, president, JIL Real estate allottees welfare society was quoted by the Hindustan Times report as saying.
