Circle Rates in Delhi, Noida, Ghaziabad to Increase by Up to 30%: Homebuyers to Face Higher Costs
The real estate market in Delhi-NCR is set for a significant shift as authorities plan to hike circle rates across residential, industrial, and commercial sectors. The Stamp and Registration Department has submitted a proposal to the District Magistrate, recommending an increase in circle rates by 25-30% for residential areas. For industrial, commercial, and IT sectors, a 10% hike is suggested, while agricultural land may see a 15% rise.
Why are Circle Rates Increasing?
Circle rates, which were last revised in August 2019, have remained unchanged for five years. According to media reports, new circle rates will soon be announced, with public feedback also being considered. Once implemented, the hike is expected to raise property prices, leading to higher stamp duty costs for homebuyers.
Impact on the Real Estate Sector
The real estate sector in Delhi-NCR has seen no revisions in circle rates between 2020 and 2023, primarily due to the slowdown during the lockdown. Earlier this year, a proposal was made to raise Ghaziabad’s residential and commercial circle rates by 15-20%. This is largely because property prices in Noida and Greater Noida have risen significantly, while stamp duty collected based on outdated circle rates remains low. This has led to a revenue gap for the government.
How Are Circle Rates Determined?
Circle rates represent the minimum price at which a property can be registered, and they are set by the district administration or the relevant development authority. These rates vary by location and are typically updated every 6 months to a year to maintain market transparency and stability.
Current Circle Rates in Noida and Greater Noida
Here’s a breakdown of the current circle rates in Noida and Greater Noida:
| Location | Circle Rate (Per Sq. Meter) |
|---|---|
| Noida (Sector 14, 14A) | ₹1.1 lakh |
| Noida (Sector 19) | ₹79,200 |
| Greater Noida (Alpha 1, 2, Gamma 2) | ₹37,000 |
The proposed hike in circle rates will lead to higher property transaction costs, along with an increase in stamp duty.
How is Stamp Duty Calculated?
Stamp duty is calculated based on circle rates or land allotment rates set by development authorities. The minimum rate is determined by the state government, ensuring that artificially inflated property prices are curbed, thus promoting market stability.
The district administration is expected to make an official announcement soon regarding the revised circle rates. It will be interesting to observe how this revision impacts the property market in the coming days.
