The Uttar Pradesh stamp and registration department is considering increasing circle rates in Gautam Budh Nagar, which includes Noida, Greater Noida, and the Yamuna Expressway region. Sources indicate that circle rates could rise by 30% to 70%, impacting residential and agricultural land transactions. The proposed changes, expected to take effect from April 1, have raised concerns among homebuyers, particularly those awaiting possession of properties in delayed projects.
Understanding Circle Rates and Their Impact
Circle rate, also known as the ready reckoner rate, is the minimum price at which a property transaction is registered with the state government. These rates are periodically reviewed to align with market trends. The stamp duty and registration charges for a property transaction are calculated based on either the circle rate or the actual sale price, whichever is higher.
The last revision of circle rates in Gautam Budh Nagar took place in 2019. The state government now aims to adjust these rates in response to rising property values, particularly in areas influenced by ongoing infrastructure developments such as the Noida International Airport in Jewar. The proposed hike will affect new property buyers as well as those registering delayed properties, increasing overall transaction costs.
Expected Changes in Circle Rates
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 rise by up to 30%, while agricultural land in the Jewar region could see an increase of up to 70%.
The Noida, Greater Noida, and Yamuna Expressway Industrial Development Authorities have already increased allotment rates for various categories of property. The stamp and registration department is now considering similar revisions for registration purposes.
Concerns Raised by Homebuyers
The proposed increase in circle rates has led to concerns among homebuyers, particularly those who have been waiting for property possession for years. Many buyers argue that their financial burden will rise due to increased stamp duty and registration charges.
As per Hindustan Times, Ashish Mohan Gupta, president of the JIL Real Estate Allottees Welfare Society, pointed out that homebuyers of delayed projects should not be penalized by the new rates. He suggested that the government consider applying the circle rate that was in effect when a property was originally purchased rather than the revised rate.
Similarly, Arun Chauhan, a buyer in the Supertech Capetown residential project in Noidaās Sector 74, emphasized the need for relief measures. He stated that if the government proceeds with the rate hike, it should allow homebuyers with delayed possession to register properties at the previous rates.
Reasons for the Proposed Hike
Officials have outlined several reasons for the proposed revision of circle rates. The primary factor is the increase in market rates of properties across Gautam Budh Nagar, driven by infrastructure development and rising demand. The Noida International Airport in Jewar has contributed to a sharp rise in property prices, prompting authorities to align circle rates accordingly.
Another reason is that circle rates have remained unchanged since 2019. During the COVID-19 pandemic, the real estate market slowed down, preventing any revisions. However, as the sector has seen growth in recent years, the government now considers it necessary to update these rates.
Governmentās Review Process
Gautam Budh Nagar District Magistrate Manish Kumar Verma stated that any revisions in circle rates will follow a structured process, with public feedback playing a key role. Before finalizing the new rates, the administration will publish the proposed changes and allow a 15-day window for stakeholders to share their views. Verma emphasized that responses will be carefully considered before making a final decision.
If the new circle rates are approved, homebuyers will have to pay higher stamp duty, leading to increased property transaction costs. For those who have not yet registered their properties, the financial impact could be significant.
For example, if the circle rate of a property increases from ā¹50,000 per square meter to ā¹65,000 per square meter, the stamp duty payable at a rate of 7% would rise accordingly. This would result in a higher financial outlay for buyers registering their properties after the implementation of the new rates.
Possible Relief Measures
Homebuyers are requesting that the government consider relief measures to mitigate the impact of the proposed hike. Some suggestions include:
- Allowing buyers of delayed projects to register properties at the circle rate applicable at the time of purchase.
- Offering temporary exemptions or waivers on stamp duty for affected buyers.
- Implementing a phased approach to the circle rate increase to reduce the immediate financial burden.
The proposed increase in circle rates in Gautam Budh Nagar has led to concerns among homebuyers, particularly those awaiting possession of delayed properties. While the government aims to align rates with market trends, buyers are calling for exemptions or relief measures to ease their financial burden. The final decision will be taken after the public consultation process, and homebuyers are encouraged to participate in providing feedback. The outcome will determine the financial implications for those purchasing or registering properties in Noida, Greater Noida, and along the Yamuna Expressway in the coming months.
