Gautam Budh Nagar proposed circle rate increase: Homebuyers worried about paying more for property
As property rates continue to rise in Noida, Greater Noida, and along the Yamuna Expressway, the Uttar Pradesh stamp and registration department is considering an increase in circle rates from April 1, particularly for residential and agricultural land. This has raised concerns among homebuyers, many of whom have been waiting for possession of their properties for years, a report published in the Hindustan Times said.
A circle rate, or ready reckoner rate, is the minimum price at which the property sale is registered. This rate is determined by the state government and is generally reviewed to ensure that it is in line with the market rate. In the event of a property being bought or sold, the stamp duty and the registration charges are calculated based on the circle rate or the actual value of the property, whichever is higher.
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Officials told Hindustan Times that the move aims to align the circle rate with the ‘market rate,’ considering the sharp rise in property prices across Noida, Greater Noida, and the Yamuna Expressway region, driven by the development of the Noida International Airport in the Jewar area. Another reason for the hike is that the circle rate has remained unchanged since 2019 due to the impact of COVID-19.
However, homebuyers, particularly those in delayed projects, have expressed concerns and are calling for relief or waivers on stamp duty to ease their financial burden.
Since the Noida, Greater Noida, and the Yamuna expressway industrial development authorities have increased the allotment rates – at which these authorities sell their property — for all kinds of property, the Uttar Pradesh stamp and registration department is contemplating a hike in all segments particularly residential and agricultural land in the district, the report quoted officials as saying.
Circle Rates in Gautam Budh Nagar may increase by 30-70%
Sources told Hindustan Times that circle rates in Gautam Budh Nagar district could increase by 30 to 70%. Residential circle rates in Noida and Greater Noida may rise by up to 30%, while circle rates for agricultural land in the Jewar region could see an increase of up to 70%.
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Gautam Budh Nagar’s district magistrate Manish Kumar Verma, however, said that they will announce the new rates only after proper procedure is completed.
“If the review and details related with the circle rates are finalised, we will put the same into public domain for the feedback from the general public before we finalise the same. We will give 15 days to the public to submit their feedback and then will take a final call,” said Verma on March 16.
If the revised rates are approved, property buyers will face higher stamp duty, resulting in an increase in overall transaction costs, said officials.
Homebuyers worried
The development has turned homebuyers a worried lot as they are yet to get the possession of their units for the last many years.
“We, the homebuyers, have been waiting for our homes for 12 years. Every revision in circle rate impacts our outflow towards stamp duty and registration which increases the financial load on us. The government should formulate a policy that in whichever year the property was purchased, the then prevailing circle rate will apply. At least homebuyers of stuck projects will have some relief or waivers on stamp duty,” said Ashish Mohan Gupta, president, JIL Real estate allottees welfare society.
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“If the circle rates are increased in Gautam Budh Nagar district then the administration should allow payment of stamp duty at old rates for those buyers who have not got the possession or delayed registry due to the fault of the realtors,” Arun Chauhan, a buyer of Supertech Capetown residential project, Sector 74, was quoted as saying by Hindustan Times.
Reasons for the proposed circle rate hike
The move, officials explained, aims to increase the circle rate at par with the “market rate” in view of the jump in the property cost in Noida, Greater Noida, and Yamuna Expressway region since the real estate prices have skyrocketed due to impact of the Noida International airport in Jewar region.
Another key reason to hike the circle rate is that it remained unchanged since 2019 due to COVID-19 lockdown which brought the property prices down before 2023, when the realty sector started witnessing rise in the property cost, said officials.
