Circle rates in Ghaziabad may rise up to 40%, buyers face higher costs

Ghaziabad administration has proposed up to 40 per cent hike in circle rates, raising concerns that higher stamp duty and fees could make homes unaffordable without regulatory relief

The Ghaziabad district administration has proposed revising circle rates upwards, with certain segments seeing increases of up to 40 per cent. According to the proposal, land rates in Indirapuram may rise from Rs 85,000 to Rs 98,000 per square metre.

 

Similarly, residential areas such as Vaishali, Ramprastha, Surya Nagar and Chandra Nagar could see rates revised from Rs 87,000 to Rs 1 lakh per square metre.

 

Rate hikes of around 18 to 20 per cent are also expected for commercial and industrial spaces in the city. The last revision took place in September 2024, when rates were raised by an average of 15 per cent. Prior to that, rates had remained unchanged for two consecutive financial years.

 

While the move may increase acquisition costs for consumers, developers and investors expect the rise to narrow the gap between transaction values and declared valuations.

 

Sunny Katyal, co-founder of property consultancy Investors Clinic, said the proposed rate hike reflects the administration’s effort to bring government valuation in line with prevailing market conditions.

 

“While this will increase acquisition costs for buyers upfront through higher stamp duty and registration fees, it could also stabilise the market in the medium term,” he added.

 

An increase of up to 40 per cent in circle rates across Ghaziabad is seen as essential in the medium term but could price out potential homebuyers if regulatory overheads are not controlled, developers and market watchers said.

 

Industry executives cautioned that while aligning circle rates with market trends is necessary, the government must also ensure that regulatory overheads do not cumulatively make homes unaffordable.

 

“Measures like staggered implementation, tax rebates or subsidies can help ease the transition,” experts said.

 

Ashish Agarwal, director, AU Real Estate, told Business Standard that for homebuyers and investors, the move signals long-term appreciation potential.

 

“While it may bring a marginal rise in acquisition cost today, it also ensures stronger returns tomorrow as the area benefits from expanding infrastructure and enhanced connectivity,” he added.

 

The draft proposal is open for public consultation, with residents allowed to submit objections to the proposed rates at tehsil or sub-registrar offices until 30 September.