Buying a house in Noida? New circle rates might hike prices — Here’s how it impacts you | Mint

Homebuyers in Gautam Budh Nagar, Noida, Greater Noida and Jewar are likely to see property prices increase as the Uttar Pradesh Stamp and Registration Department has notified a draft proposal for hike in circle rates for these areas.

Notably, the DA has opened public feedback on the proposal till April 5, 2025, the notices added. Speaking to Hindustan Times newspaper, Gautam Budh Nagar’s district magistrate Manish Kumar Verma said the final new rates will only be announced post consultation and feedback from the general public.

What is Circle Rate?

Circle rates are set by the local government as the minimum property values used to calculate registration fees and stamp duty.

The move, which means hikes of between 20-70 per cent in the mentioned areas, comes after nine years of steady rates in the district. In draft notices posted on the Gautam Budh Nagar district administration’s (DA) official website, dated March 25, the authority has proposed circle rate increases in Gautam Budh Nagar, Greater Noida, Noida and Jewar.

What Does Hike in Circle Rate Mean for You?

A circle rate hike would directly increase the cost of registered flats and properties in Gautam Budh Nagar, Greater Noida, Noida and Jewar. This makes buying a home more expensive.

As per the draft notification for Gautam Budh Nagar district, a 20 per cent hike has been proposed in Noida for high-rise apartments, and 30 per cent in Greater Noida. For agricultural land, Jewar will see a hike of 70 per cent, Greater Noida of close to 50 per cent, and Noida by 40 per cent.

Further, the proposal also includes a “location” cost that takes into account proximity to key facilities and area code, according to an India Today report. For example, housing society flats within 500 metres of a metro station could see prices rise by 5-12.5 per cent under the new circle rates.

What Do Experts, Stakeholders Say?

According to Zafeer Ahmed, MD of XRE Consultants, the increase in circle rates will have “massive impact on the price of real estate across different classes”.

• For multi-storey residential apartments in premium Noida Sectors such as 150, 76, or 44, circle rate revisions are likely to increase per sq.ft prices by 15–20 per cent as the developers will transfer the burden of increased stamp duty and land cost to the buyers.
• In the same vein, commercial spaces in Noida’s Sector 18 and Greater Noida’s Alpha/Beta sector is likely to witness a surge in prices by around 10–12 per cent.
• Meanwhile, industrial plots in Jewar are likely to increase in price post-revision by approximately 20–25 per cent. These high acquisition costs across segments will result in elevated rental costs.
• For example, Residential rentals in Jewar, will likely increase by 8–10 per cent yearly because of demand associated with the airport while commercial spaces especially in Noida’s Sector 62 are likely to experience a 5–7 per cent increase in office rental prices as investors look to make returns due to heightened ownership costs.
• Investors who lock purchases at this time—especially in Jewar’s residential/commercial belt and metro connected regions of Noida—will benefit with dual appreciation—increase in value of assets due to alignment with circle rates and boosted infrastructure demand.
• The impact is most likely to be felt in ready-to-move properties, where the price increases will be immediate.

How Can Jewar Farmers Benefit?

According to Siddharth Maurya, Founder and MD property sales company Vibhavangal Anukulakara, farmers in Jewar will be the biggest winners of this circle rate increase, and will benefit from the revised valuation of residential plots granted to them in lieu of purchased land.

“The circle rate alterations will be highly advantageous for farmers in Jewar and the neighboring areas. The 70 per cent increase in agricultural land rates will make sure that farmers are compensated fairly with market value for their land since the law states compensation must be at least double the circle rate,” Maurya noted.

He added that the revised valuation of residential plots and increase in asset value, will also reduce the disparity in the pricing of the land, addressing the problem of black money, thus increasing monetary transparency.

“Overall, the changes enhance the position of farmers by ensuring the compensation corresponds with the appreciation of value due to infrastructure in the region, particularly Jewar, where the need for the airport is rapidly changing the area,” Maurya said.

Homebuyers Alert! Stamp Duty Cost To Zoom

According to Aman Gupta, Director at real estate development company RPS Group, the increase in circle rates will hit homebuyers. “The increase will surely increase the cost stamp duty, there is hardly any benefit to the homebuyers,” he said.

But there is a silver lining, Gupta noted that the clarity in property valuations is likely to minimise the likelihood of opaque dealings and will promote a better market economy. “Hikes on stamp duty also indicate better developed infrastructure which increase the value of the property in the long-run,” he felt.

He did however raise the alarm for homebuyers whose properties have been delayed. “There are severe problems for buyers who are simply waiting for their projects to be completed. These buyers are concerned about the new rates being imposed retrospectively as it translates to considerable additional payment,” he noted.

He suggested that likely to be affected parties can approach the authority with feddback on the same. “Supporters of these new rates suggest that they should be based, the applicable circular rate should be calculated at the time of booking and not possession. The feedback window from the government allows for constructive discourse to these issues raised. This suggests that while these issues may not be solved in the short term, in the long term may stabilise price increases,” Gupta said.