The real estate market in Delhi-NCR is going to be costlier in the coming time as the Stamp and Registration Department has given the District Magistrate a proposal to alter the circle rates in Gautam Budhnagar district-Noida-Greater Noida. According to the proposal, there are plans to raise the circle rates in residential areas by 25-30%. Furthermore, it has been recommended that circle rates for the industrial, commercial, and IT sectors lands be increased by 10%, and agricultural land by 15%.
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The circle rate was revised in 2019
The circle rates last revised in August 2019 have not been changed for five years. According to media reports, the new circle rates will be announced soon, and the public will be consulted. the reports said that implementing new circle rates might result in higher property prices, forcing buyers to pay more stamp duty.
The real estate sector was hit hard during the lockdown, which resulted in no change in the circle rates from 2020 to 2023. This year, a suggestion was made to increase circle rates for residential and commercial properties in Ghaziabad by 15-20%. The reasoning behind this is that the prices of flats in Noida and Greater Noida have increased significantly in recent years, while the stamp duty collected based on circle rates is low. This has resulted in a reduction in government revenue.
How are circle rates set?
Any property’s minimum value at which it is valid for registration is known as the circle rate. This rate is set by the district administration or the concerned development authority. This might change depending on the area. These rates are updated every 6 months to 1 year, which keeps the real estate market transparent and stable.
Noida and Greater Noida circle rate data
Residential plots in Sector 14 and 14A in Noida cost around Rs 1.1 lakh per square metre, while those in Sector 19 cost around Rs 79,200. The circle rate in Alpha 1, 2, and Gamma 2 zones of Greater Noida is Rs 37,000 per square meter. Due to the rise in circle rates, the sale and purchase of properties at the new rates will become more expensive, as well as the stamp duty.
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Stamp duty is levied based on circle rates or land allotment rates, which are periodically reviewed by the development authorities. The state government decides the minimum rate. This helps to control the unjustified increase in property rates and stabilizes the real estate market. In the coming days, the district administration will make an official announcement regarding the circle rates. It will be fascinating to see what changes will be made to the real estate market as a result of this revision.
