The real estate market in Delhi-NCR is on the brink of a significant change. The Stamp and Registration Department has proposed a sharp increase in circle rates, with a 25-30% rise planned for residential properties. For commercial, industrial, and IT sectors, a 10% hike has been suggested, while agricultural land is expected to see a 15% increase.
Why the Circle Rate Hike?
Circle rates were last revised in August 2019, and there has been no change for over five years. Given the rising property prices in Delhi, Noida, and Ghaziabad, the administration believes that an update is necessary to keep up with market trends. Circle rates serve as the minimum property value for registration and are used to calculate stamp duty, meaning this increase will directly raise the cost for homebuyers.
The proposal is currently under review, and public opinion will be sought before the new rates are officially implemented. However, the hike is expected to make property transactions more expensive as buyers will have to shell out more for both the property and stamp duty.
Impact on Homebuyers and the Real Estate Sector
From 2020 to 2023, there were no changes to circle rates due to the pandemic’s impact on the real estate market. However, with real estate slowly recovering and property values increasing, especially in Noida and Greater Noida, the current circle rates no longer reflect the true value of properties in the region.
For example, the price of flats in areas like Noida and Greater Noida has seen a steep rise, but the stamp duty calculated based on older circle rates remains lower, affecting government revenue. The proposed hike aims to address this gap.
How Circle Rates Affect Property Prices
Circle rates are the benchmark for property transactions, determining the minimum value at which a property can be registered. Set by the district administration or local development authorities, these rates differ based on location and are typically revised every six months to a year.
The current circle rates in Noida range from ₹79,200 to ₹1.1 lakh per square metre for residential areas, while Greater Noida’s rates hover around ₹37,000 per square metre in sectors like Alpha 1, 2, and Gamma 2. The new increase will make property transactions more expensive, and buyers will also face higher stamp duty charges.
What the Future Holds
With the proposed revision, property buying in Delhi-NCR will undoubtedly become more costly. The circle rate hike will lead to higher registration values, and as a result, buyers will have to pay more stamp duty. For homebuyers in Delhi, Noida, and Ghaziabad, this means that the already expensive property market is set to become even more burdensome.
An official announcement from the district administration is expected soon, and the real estate sector is keenly awaiting the new rates.
