Noida’s real estate market is bracing for a significant change as the Stamps and Registration Department has proposed a 30% hike in circle rates for residential areas, the first revision in five years.
This adjustment, if approved, will affect property prices across multiple sectors, including commercial, industrial, and agricultural land.
The department submitted the proposal to the district magistrate, aiming to close the gap between current property values and outdated circle rates. In addition to the 30% increase for residential zones, circle rates are expected to rise by 10% in commercial and industrial areas and 15% for farmland.
Higher Costs for Buyers
Circle rates, which determine the minimum property value on which stamp duty is calculated, have remained unchanged since 2019. With property prices steadily rising in Noida and Greater Noida, this adjustment will lead to increased stamp duty payments for buyers. The stamp duty is collected based on the higher of two values: the circle rate set by the district administration or the allotment rate determined by the development authorities of Noida, Greater Noida, and Yamuna Expressway.
According to Shashi Bhanu Mishra, assistant inspector-general of registration, this revision is long overdue. “The cost of flats in Noida and Greater Noida has gone up significantly in recent years, but the stamp duty collected remains low because it’s based on outdated circle rates. Revising these rates will help align with current market values,” he told The Times of India.
A Boon for Investors and Developers
The proposed hike is seen as a positive sign for developers and investors, as it reflects the rising demand and value of properties in the region. Higher circle rates are often linked to property appreciation, creating opportunities for those looking to invest in Noida’s real estate market.
“Developers are optimistic about this revision, as it can drive up the perceived value of new projects and encourage further investment in the region,” said a local real estate expert. “For investors, this could translate into higher returns, especially in areas where infrastructure development is ongoing.”
Public Feedback and Next Steps
District Magistrate Manish Verma stated that the proposal would be made available for public feedback within two days. Residents will have 15 days to submit objections, if any, before the rates are finalized. “We are currently studying the proposal. Once the rates are notified, no further objections will be entertained,” Verma added.
The move comes at a time when the real estate market in Noida is showing signs of recovery after a slowdown due to the COVID-19 pandemic. Neighboring Ghaziabad saw a similar hike in circle rates earlier this year, with increases ranging from 15% to 20%.
As Noida continues to grow as a real estate hub, the proposed hike is expected to bring the city’s property values in line with current market conditions, making it a hotspot for future development and investment.