Noida: After five-year freeze, 30% hike proposed in circle rates

The proposal, submitted by the stamp and registration department to district magistrate Manish Kumar Verma recently, aims to bring the circle rates on par with the current market rates, which has seen a substantial rise in the past few years.

District magistrate Manish Kumar Verma has confirmed that the proposal is carefully being reviewed at present. “We will publish the new rates for public feedback over the coming days and residents will have around two weeks to raise any objections/suggestions before the final rates are notified,” he said.

“We have submitted a proposal to the DM for a 30% hike in circle rates for residential areas in Noida and we are optimistic that the proposal will be carefully considered and approved, as it is necessary to align the circle rates with the current market rates,” said Shashi Bhanu Mishra, assistant inspector-general, registration, Gautam Budh Nagar.

To be sure, stamp duty for a property is calculated based on either the circle rate or the land allotment rate, whichever is higher. While the circle rate is decided by the district magistrate, the land allotment rate is determined by the three development authorities of Noida, Greater Noida and Yamuna Expressway within their respective jurisdictions. These authorities typically review and adjust their allotment rates every six months or once a year.

Officials at revenue department said the last revision of circle rates in Noida was made in August 2019. Since then, despite a considerable increase in market rates for properties, the circle rates—which determine the amount of stamp duty that a buyer pays—have remained unchanged.

The gap between market value and circle rates has widened, leading to a loss of potential revenue for the government and underreporting of property transactions. The proposed hike seeks to bridge the gap, officials said.

According to revenue department officials, apart from a 25-30% increase in circle rates for residential areas, they have also recommended a 10% rise for plots in industrial, commercial, and IT sectors, and a 15% hike for agricultural land.

In high-demand sectors such as Sector 44, the current circle rate for residential plots is ₹1.2 lakh per square metre, while in Sector 15A, it is approximately ₹1.15 lakh per square metre.

Whereas, in Beta 1, and Gamma 2, the circle rate for residential plots is approximately ₹37,000 per square metre. However, actual property transactions often surpass these rates.

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

Mishra batted for the revision and said, “Noida’s real estate market has expanded quickly, yet the circle rates have not been adjusted accordingly. This proposed revision aims to correct that imbalance and bring the rates in line with current property values.”