The Uttar Pradesh Stamp and Registration Department is considering a significant hike in circle rates for Gautam Budh Nagar, which includes Noida, Greater Noida, and the Yamuna Expressway area. Sources suggest that the new rates could rise by 30% to 70%, impacting both residential and agricultural land transactions. With the proposed changes slated to take effect on April 1, many homebuyers, especially those waiting for possession of properties in delayed projects, are voicing their concerns.
Understanding Circle Rates and Their Effect
Circle rates, also known as ready reckoner rates, represent the minimum price at which a property transaction must be registered with the state government. These rates are periodically revised to reflect market trends. The stamp duty and registration charges for any property transaction are determined by the higher value between the circle rate and the actual sale price.
The last revision of circle rates in Gautam Budh Nagar was in 2019, and now, the state government plans to increase them in response to rising property values. This is particularly due to infrastructure developments like the Noida International Airport in Jewar. The proposed hike will impact new buyers and those registering delayed properties, increasing the overall cost of transactions.
Expected Impact of the Rate Hike
Officials have indicated that the increase in circle rates will vary across different types of land. Residential property rates in Noida and Greater Noida may see a rise of up to 30%, while agricultural land around the Jewar region could experience an increase of as much as 70%.
Additionally, the Noida, Greater Noida, and Yamuna Expressway Industrial Development Authorities have already raised their allotment rates for various property categories, and the stamp and registration department plans to follow suit with revisions for registration purposes.
Homebuyers’ Concerns
The proposed increase in circle rates has sparked concern, especially among homebuyers who are still waiting for possession of their properties. Many fear that the hike will lead to higher stamp duty and registration costs, further straining their finances.
Ashish Mohan Gupta, president of the JIL Real Estate Allottees Welfare Society, raised an important point, stating that buyers of delayed projects should not be penalized by the new rates. He suggested that the government should apply the circle rate from the time of purchase, rather than the revised rate.
Similarly, Arun Chauhan, a buyer in the Supertech Capetown project in Noida’s Sector 74, expressed his worries and called for relief measures. He emphasized that if the government moves forward with the rate hike, homebuyers with delayed possessions should be allowed to register their properties at the previous rates.
Reasons Behind the Proposed Hike
The proposed circle rate hike is primarily driven by the rise in market property prices, fueled by ongoing infrastructure development and increased demand. The Noida International Airport in Jewar has played a significant role in pushing property prices upward, prompting authorities to revise circle rates accordingly.
Additionally, the last update to circle rates occurred in 2019. While the real estate market experienced a slowdown during the COVID-19 pandemic, the sector has since recovered, leading the government to reconsider the rates to better reflect the current market situation.
Government’s Review Process
Gautam Budh Nagar District Magistrate Manish Kumar Verma assured the public that any changes to the circle rates will follow a structured process, with public feedback being a crucial part. The administration plans to publish the proposed changes and provide a 15-day window for stakeholders to share their views. Verma emphasized that the feedback will be thoroughly reviewed before finalizing any decisions.
If the new circle rates are approved, homebuyers will face higher stamp duty, resulting in increased property transaction costs. For those who have yet to register their properties, the financial impact could be substantial. For instance, if the circle rate for a property increases from ₹50,000 per square meter to ₹65,000 per square meter, the stamp duty payable at a rate of 7% will also rise, leading to higher costs for buyers registering properties after the rate hike.
Possible Relief Measures
In light of these concerns, homebuyers are calling on the government to consider relief measures to alleviate the financial burden of the proposed rate increase. Some suggested measures include:
- Allowing buyers of delayed projects to register properties at the circle rate that was applicable at the time of purchase.
- Offering temporary exemptions or waivers on stamp duty for affected buyers.
- Implementing a phased increase in circle rates to ease the immediate financial impact.
Conclusion
The proposed circle rate hike in Gautam Budh Nagar has led to growing concerns among homebuyers, particularly those awaiting possession of delayed properties. While the government aims to align rates with market trends, many buyers are seeking exemptions or relief measures to reduce the financial strain. The final decision will be made after a public consultation process, and homebuyers are encouraged to provide feedback. The outcome will determine the financial implications for those purchasing or registering properties in Noida, Greater Noida, and the Yamuna Expressway in the coming months.