Proposed circle rate hike to make property costlier in Noida, Jewar

Experts believe potential rise may enhance investor confidence in long run

The proposed increase in circle rates ranging between 20 per cent and 70 per cent across Noida, Greater Noida and Jewar will lead to property prices rising in these areas, as stamp duty charges levied on the sales and registration fees would go up for home buyers.

 

According to a draft notification issued by the Gautam Budh Nagar district administration on March 25, the state government is expected to increase circle rates in the Gautam Budh Nagar district by 20 per cent to 70 per cent. While residential circle rates in Noida and Greater Noida may rise by up to 30 per cent, circle rates for agricultural land in the Jewar region could see an increase of up to 70 per cent. The administration has asked for inputs from stakeholders by April 5, after which it will bring the proposal into effect.

 

Circle rates are the minimum values assigned to properties for calculating stamp duty and other fees during registration.

 

Santhosh Kumar, vice-chairman, Anarock Group, said that the proposed increase in circle rates was inevitable, as the real estate growth in these regions has been rapid in the last few years and the government is increasing the circle rates in line with the current property values prevailing there.

 

Circle rates were last changed in 2019.

 

According to Anarock Research, the average residential prices in Noida have seen a 92 per cent jump from Rs 4,795 per square foot to nearly Rs 9,200 per square foot between end-2019 and the first quarter (Q1) of 2025.

 

Similarly, average prices in Greater Noida jumped by a whopping 97 per cent in the same period, from Rs 3,340 per square foot to Rs 6,600 per square foot as of end-Q1 2025.

 

Real estate sector experts expect that despite the immediate financial implications of the Uttar Pradesh government’s proposed increase in circle rates, the move is expected to enhance investor confidence and support the long-term growth trajectory of Noida and its surrounding regions.

 

Swapnil Anil, managing director, advisory services, Colliers India, said, "This revision helps bring government-declared property values closer to actual market rates, making transactions more transparent and fair while reducing discrepancies in land."

 

He added that bringing circle rates in line with actual market prices ensures greater transparency in real estate transactions. "This prevents property undervaluation, which often leads to tax evasion and disputes over pricing."

 

Terming the move as an attempt to bridge the gap between official rates and real market trends, Ravi Nirwal, sales director and principal partner at Square Yards, said that the administration is responding to the sustained rise in land and property prices driven by infrastructure development over the years.

 

“Jewar, in particular, is set to witness the most substantial rise, with agricultural land rates potentially increasing by 70 per cent, highlighting the growing demand spurred by the upcoming Noida International Airport,” he added.

 

As circle rates rise, the stamp duty payable on property transactions will also increase, leading to higher costs for buyers. This could further strain the budget of potential homeowners, especially those already dealing with escalating property prices.

 

While this adjustment aims to narrow the gap between circle rates and actual market values, experts believe it will also lead to higher stamp duty and registration costs for buyers, impacting overall transaction expenses.