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The stamps and registration department has proposed a 25-30% increase in circle rates for residential areas, 10% for industrial, commercial, and IT sectors, and 15% for farmland, marking the first revision in five years. This adjustment will raise property prices and stamp duty costs for buyers, aligning them with current market trends, especially in Noida and Greater Noida where property values have surged. Circle rates, used to calculate stamp duty, remained unchanged from 2020 to 2023 due to the pandemic's impact on the real estate sector. The proposed revisions aim to reflect the rising real estate prices, ensuring fair taxation and supporting market growth.
The stamps and registration department has submitted a proposal to the district magistrate to revise circle rates, which have remained unchanged for the past five years. The proposal seeks to increase circle rates by 25-30% in residential areas, 10% in industrial, commercial, and IT sectors, and 15% for farmland. Advertisement
The revision of circle rates is expected to impact overall property prices across various categories, resulting in higher stamp duty costs for buyers. Stamp duty for a property is calculated based on the circle rate set by the district administration or the land allotment rates determined by three development authorities-Noida, Greater Noida, and Yamuna Expressway-which are typically higher. These authorities usually adjust their allotment rates every six months or annually.
Shashi Bhanu Mishra, assistant inspector-general of registration, noted that the last revision of circle rates occurred earlier in August 2019. Mishra confirmed that the stamps and registration department has proposed a revision, stating that while circle rates have remained constant since 2019, the cost of flats in Noida and Greater Noida has increased significantly. He indicated that the current stamp duty, which is based on the circle rate, is considerably lower and suggested that the rates should be adjusted to better reflect market conditions.
Officials explained that the decision to maintain existing circle rates from 2020 to 2023 was influenced by the downturn in the real estate sector due to the pandemic. Typically, circle rates are revised annually, with changes implemented from August 1.
In Noida, rates will vary depending on sectors and categories, including residential, commercial, industrial, and IT. For example, the rate for residential plots in Noida's sectors 14 and 14A is approximately INR 1.1 lakh per square metre, while in Sector 19, it is INR 79,200. In Greater Noida, the circle rate in areas like Alpha 1, 2, and Gamma 2 is set at INR 37,000 per square metre.
In conclusion, the proposed revision of circle rates aims to align property values with market trends, reflecting the significant increases in real estate prices. This adjustment is crucial for ensuring fair taxation and supporting the local property market's growth.
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