In a significant move, the Uttar Pradesh Stamp and Registration Department is set to revise property circle rates (or ready reckoner rates) in Noida for the upcoming financial year. This increase, which could range from 20% to 70%, will directly impact property buyers in regions like Noida, Greater Noida, Jewar, and along the Yamuna Expressway. Circle rates dictate the minimum property value for calculating stamp duty and registration costs, and an increase in these rates means higher transaction costs for homebuyers.
The revision comes after a nine-year gap, with property prices already rising steadily in these areas. While the hike aims to align with the current market trends, it may increase the financial burden on homebuyers, especially those with limited budgets. Here’s what you need to know about the Noida circle rate hike and how it will affect your home buying plans.
What is the Circle Rate?
Before diving into the impact of the circle rate hike, it’s important to understand what circle rates are. Circle rates are the minimum property values set by the government for calculating stamp duty and registration fees during property transactions. These rates are updated annually, although they have not been revised in Noida for nearly a decade.
- DM Circle Rates: These are set by the District Magistrate and are applicable across both agricultural and non-agricultural land.
- Development Authority Rates: Each area under a development authority, like Noida Authority, Greater Noida Industrial Development Authority (GNIDA), and Yamuna Expressway Industrial Development Authority (YEIDA), also has its own circle rates.
Proposed Hike in Circle Rates
The proposed increase in Noida circle rates varies across different regions:
- Noida: Circle rates for high-rise apartments are expected to rise by 20%. For example, upscale sectors like 14A, 15A, and 44 will see rates increase from ₹1.03 lakh – ₹1.2 lakh per sq meter to ₹1.2 lakh – ₹1.4 lakh per sq meter, depending on road width.
- Greater Noida: A proposed 30% hike will raise condominium flat rates in sectors like Alpha 1 and 2, Gamma 1 and 2, and Beta 1 and 2, from ₹28,000-28,500 per sq meter to ₹36,400-37,050 per sq meter.
- Jewar (Yamuna Expressway Region): The region is expected to see a massive 70% increase in proposed circle rates due to the upcoming Noida International Airport, which is expected to drive further real estate demand.
Impact on Property Prices and Home Buyers
The proposed circle rate hike will likely lead to an increase in property prices in the affected areas, especially in Noida and Greater Noida, which have already experienced sharp price surges.
- Price Appreciation: According to ANAROCK Research, residential prices in Noida have increased by 92% from the end of 2019 to Q1 2025 (from ₹4,795 per sq ft to ₹9,200 per sq ft). Similarly, Greater Noida has seen a 97% rise in prices over the same period.
- Stamp Duty Increase: Since circle rates are directly linked to stamp duty, the increase will lead to higher transaction costs. For instance, a buyer purchasing property at a higher circle rate will also have to pay more stamp duty and registration fees, adding to the overall cost of acquisition.
Santhosh Kumar, Vice Chairman of ANAROCK Group, stated:
“The proposed hike in circle rates will further raise the overall cost of property acquisition for homebuyers, who are already facing soaring property prices due to increasing residential prices by developers.”
Concerns Among Homebuyers
The proposed hike in circle rates has raised concerns among potential homebuyers, especially those who have been waiting for years to get possession of their units.
- Impact on Delayed Possession: Homebuyers who have been waiting for registration and possession for over a decade are worried about the stamp duty increase. Rajiva Singh, President of the Noida Federation of Apartment Owners Associations, emphasized that these buyers should be charged the circle rates that were prevalent at the time of booking, rather than the new rates.
“Whenever the circle rates increase, such homebuyers get impacted as they would need to shell out more money towards stamp duty. Such home buyers should be charged circle rates which were prevalent at the time of booking and not the current rates,” Singh said.
Summary Table: Quick Facts
| Key Insight | Details |
|---|---|
| Proposed Circle Rate Increase | 20% to 70% |
| Noida Property Price Increase | 92% (from ₹4,795 to ₹9,200 per sq ft) |
| Greater Noida Property Price Increase | 97% (from ₹3,340 to ₹6,600 per sq ft) |
| Major Hike Locations | Noida, Greater Noida, Jewar (Yamuna Expressway) |
| Impact | Higher property prices, increased stamp duty, higher transaction costs for buyers |
Frequently Asked Questions (FAQs)
1. What is the circle rate in real estate?
- Circle rate is the minimum property value set by the government for calculating stamp duty and registration charges during a real estate transaction.
2. How will the proposed circle rate hike affect home buyers?
- The proposed hike will lead to an increase in stamp duty costs, raising the overall transaction cost for buyers. Property prices are also expected to rise in areas like Noida, Greater Noida, and Jewar.
3. Why are circle rates being increased now after nine years?
- The increase is being made to align with the current real estate market trends and growing demand in these regions, particularly with the influx of infrastructure projects like the Noida International Airport and improved connectivity.
4. How much will property prices increase due to the circle rate hike?
- Property prices in Noida could rise by up to 20%, while Greater Noida may see a 30% increase, and Jewar could experience a 70% surge in prices.
5. Will homebuyers who have delayed possession pay higher stamp duty?
- Yes, homebuyers waiting for possession may be impacted by the increased circle rates and the associated stamp duty charges, though there are calls for charging them based on the circle rates at the time of booking.