Noida Proposes 30% Hike in Circle Rates After Five-Year Freeze

Noida’s revenue department proposes a 30% hike in circle rates for residential areas, aiming to align with market rates after a five-year freeze.

Circle Rate Hike Proposed After Five Years

In a bid to match current market prices, the revenue department of Uttar Pradesh has recommended a 30% increase in circle rates for residential areas in Noida. This proposal comes after a five-year freeze on the rates, with officials submitting the recommendation to district magistrate Manish Kumar Verma for review. The revised rates aim to reflect the significant rise in property values over the past few years.

District magistrate Verma confirmed that the proposal is under consideration, with plans to publish the new rates for public feedback soon. “Residents will have about two weeks to submit their objections or suggestions before the final rates are announced,” Verma said.

Details of the Proposed Hike

According to Shashi Bhanu Mishra, assistant inspector-general, registration, Gautam Budh Nagar, the department is optimistic that the proposal will be approved. The increase is considered essential to bring circle rates in line with the current market trends.

In addition to a 25-30% rise in residential areas, the proposal includes a 10% hike for plots in the industrial, commercial, and IT sectors, and a 15% increase for agricultural land. For example, in Sector 44, the current circle rate for residential plots stands at ₹1.2 lakh per square metre, while Sector 15A’s rate is around ₹1.15 lakh per square metre. In other areas like Beta 1 and Gamma 2, the circle rate is approximately ₹37,000 per square metre, though property transactions in these regions typically exceed these values.

Addressing the Market Imbalance

Officials emphasized that despite a significant rise in market prices, the last adjustment to circle rates was made in August 2019. This has created a wide gap between market values and circle rates, leading to underreporting of transactions and loss of revenue for the government. The proposed hike seeks to bridge this gap.

Mishra pointed out that Noida’s real estate market has seen rapid growth, but the circle rates have remained stagnant. “The revision is necessary to correct the imbalance between the current property values and the outdated circle rates,” he explained.

Impact on Property Buyers

If the proposal is accepted, property buyers in Noida could see an increase in stamp duty costs, as stamp duty is calculated based on either the circle rate or the land allotment rate—whichever is higher. Authorities at Noida, Greater Noida, and Yamuna Expressway determine the land allotment rate, which is usually reviewed every six months or annually.

The approval of these revised rates would mean higher transaction costs for buyers, but officials argue that it is a necessary step to align official rates with real market conditions.

These revisions are expected to bring Noida’s circle rates more in line with actual market trends, helping the government recover lost revenue and address the growing disparity between official rates and transaction values.