Ghaziabad Property Market Faces Surge: Circle Rates Hiked by Up to 15%

As of September 2024, the real estate landscape in Ghaziabad is witnessing significant changes with a hike in circle rates for residential, commercial, and agricultural properties. Circle rates, which are the government-defined minimum rates at which properties can be registered, have been increased by up to 15%. This marks the first revision in circle rates after a two-year freeze. The new rates are set to push property prices to unprecedented levels, particularly in some of the city’s prime residential and commercial zones.

Impact of the Circle Rate Hike

The 15% hike in circle rates, effective immediately, will drastically affect the prices of residential plots, commercial properties, and agricultural land. For prospective homebuyers, especially those in the middle-income bracket, this hike poses a challenge in terms of affordability. The increase in circle rates will lead to higher stamp duty and registration charges, adding to the overall cost of property transactions.

According to Government Officials, the hike was inevitable due to significant infrastructural developments in Ghaziabad, including better connectivity through rapid rail, the expansion of metro services, and the presence of major expressways such as the Delhi-Meerut Expressway. These factors have contributed to the rise in market property values, prompting the government to adjust the circle rates accordingly.

Breakdown of the Hike Across Ghaziabad

The hike in circle rates is not uniform across the city. The most substantial increase is seen in areas like Wave City and Aditya World City, where the circle rate for residential plots has jumped from Rs 17,300 per square meter to Rs 35,000 per square meter. These areas, located along NH-9, are rapidly developing and have become hotspots for property buyers and investors.

In Indirapuram, one of Ghaziabad's most sought-after residential localities, the circle rate has risen from Rs 58,000 per square meter to Rs 95,000 per square meter. Similarly, in Kaushambi, the revised circle rate stands at Rs 1.03 lakh per square meter, up from Rs 64,000 per square meter. Vaishali township has also seen a sharp rise, with rates increasing to Rs 97,000 per square meter from the previous Rs 58,000 per square meter.

Other areas like Vasundhara have witnessed a hike in circle rates as well. The circle rate, which previously stood at Rs 52,000 per square meter, has now increased by Rs 28,000 per square meter, further contributing to the growing cost of properties in the region.

Commercial and Agricultural Properties

The hike extends to commercial properties as well. In Indirapuram and Vaishali, the new circle rate for commercial properties is Rs 1.15 lakh per square meter, up from Rs 1.08 lakh per square meter. In Ambedkar Nagar, a bustling commercial hub, the rate has surged from Rs 1.38 lakh per square meter to Rs 1.50 lakh per square meter.

Agricultural land has also been affected, with an average hike of 10% across the district. For instance, in Jagjivanpuram village, the circle rate for agricultural land has gone up from Rs 1.07 crore per hectare to Rs 1.77 crore per hectare. In Noornagar village, the revised rate stands at Rs 21.7 crore per hectare.

Government Justification for the Hike

The AIG (Stamp and Registration Department) in Ghaziabad, Pushpendra Kumar, noted that the increase in circle rates reflects recent infrastructural developments in the city, including new metro lines, rapid rail services, and the Delhi-Dehradun Expressway. These advancements have significantly raised property values, as evidenced by a departmental survey showing that actual transaction prices exceed the current circle rates. Consequently, the government has revised the circle rates to better align with the evolving real estate market.

Revenue Projections and Fiscal Implications

The revision in circle rates is expected to significantly boost government revenue through increased stamp duty collections. The Stamp and Registration Department anticipates that the revised rates will help achieve the revenue target of Rs 125 crore for the current fiscal year. Last year, the state government set a revenue target of Rs 3,104 crore for Ghaziabad, of which 96% was achieved. With the new circle rates in place, the government expects to surpass the target for this year.

The freeze on circle rates over the last two fiscal years had kept property prices relatively stable, but with the revised rates now in effect, the real estate market in Ghaziabad is set for a surge. This development is likely to impact not just homebuyers but also investors and developers, as property prices are set to rise in tandem with the circle rate hike.

Conclusion

The hike in circle rates across Ghaziabad is a move that reflects the city's rapid growth and infrastructural improvements. While it may bolster government revenue, the increase also presents challenges for potential homebuyers, especially those looking for affordable housing options. The new rates will make properties in key areas of Ghaziabad significantly more expensive, affecting both residential and commercial real estate transactions. As Ghaziabad continues to grow as a real estate hub, this hike underscores the city's evolving market dynamics, shaped by expanding infrastructure and rising demand for property.