Noida Circle Rates to Jump 20% in FY26, First Hike in Nine Years

The government has announced a 20% increase in Circle rates for Noida-based properties for the financial year 2022-2023, which will have a material impact on property valuations in the region. It will be the first time in nine years that Circle rates have changed and comes at a time when Noida and surrounding areas are undergoing a period of rapid infrastructural development, mainly due to the opening of the much-awaited Noida International Airport, which is due to open in May this year. In this article, we analyze reasons for the proposed Circle Rate increase, its effects across property segments, and what it means for buyers, sellers, and investors.

What Are Circle Rates in Noida?

Circle rates in Noida are the lowest prices determined by the government for properties for the purpose of calculating stamp duty, registration fees and property taxes. These values are an important point of reference for each property transaction and help to ensure that the state receives the correct amount of revenue. They are based on the minimum value of the market and increases in circle rates affect the overall transaction costs for properties.

Also Read: Circle Rate in UP 2025: A Complete Guide for Homebuyers

Reasons Behind the Increase

Several factors have driven the proposed 20% hike in Circle rates in Noida:

• Infrastructure Developments: With the Noida International Airport set to become operational, the region is expected to experience increased economic activity and property demand. Improved connectivity and associated urban developments are key drivers of the rate hike.
• Market Trends: Over the past decade, property values in Noida and Greater Noida have seen a significant rise, yet the official Circle rates in Noida have remained stagnant. The proposed revision aims to bridge the gap between actual market values and the rates used for taxation.
• Economic Adjustments: The revision is also intended to align the official rates with current market realities, ensuring fair compensation for property transactions and reducing the revenue shortfall from stamp duty collections.
• Regulatory Updates: The new valuation list, prepared under the Uttar Pradesh Stamp (Valuation of Property) Rules, reflects updated market conditions. Stakeholder feedback is being accepted until April 5, after which the final rates will be implemented.
  

Impact on Different Property Segments

The proposed changes in Circle rates in Noida will affect various property categories differently. Below is a table summarizing the key proposed hikes:

The chart identifies the major adjustments anticipated for classed property types, which represent the overall process of the revision. For example, in higher-end residential neighborhoods, the Circle rates in Noida are set to rise significantly, increasing the total cost of ownership. Similarly, the proposed increase for agricultural lands in Jewar highlights a particularly eye-opening increase in its rates of 70%, a hike that can be attributed to the directionality of Jewar, being the new airport.

Also Read: Gautam Budh Nagar Circle Rate Set for Major Hike: What Homebuyers Need to Know

Regional Impact and Broader Implications

Noida and Greater Noida

The suggested increase in Circle rates in Noida will directly affect property transactions in both Noida and Greater Noida. Buyers and investors should expect to pay higher stamp duties and registration fees because the new rates will be used to calculate these fees. This will increase upfront transactional costs; however, it aligns official valuations with current market conditions, allowing for fair transactions and more revenue for local authorities.

Jewar and Agricultural Land

In Jewar, the Noida International Airport is an important growth driver; the substantial increase of 70% in Circle rates for agricultural land in Noida indicates increased demand and an anticipated rise in value. This adjustment for land acquisition compensation rates and potential impact on property values in the region.

Commercial Properties

It is suggested that Circle rates for commercial properties in Noida will rise by 15%. This is intended to capture the actual market value for commercial plots, particularly in zones of considerable economic activity. The increased commercial rates may alter property tax calculations and transaction costs but will generate a more representative base value for market value.

Why These Changes Matter

Understanding the new Circle rates in Noida is crucial for multiple reasons:

• Transparency: The revised rates ensure that property transactions are conducted at fair market values, reducing the risk of undervaluation.
• Revenue Collection: For the government, updated Circle rates in Noida will lead to more accurate assessments and improved revenue from stamp duty and taxes.
• Investor Confidence: Clear and updated rates help investors make informed decisions by providing a realistic baseline for property values.
• Market Efficiency: Aligning official rates with market trends contributes to overall market stability and encourages sustainable urban growth.
  

Conclusion

The new proposed 20% increase in Circle rates in Noida represents a significant change in the way properties in Noida, one of India's fastest growing real estate markets, will be valued. After no changes for 9 years, the new Circle rates will reflect moving and current market realities due to significant infrastructure growth, including the Noida International Airport. Although the upward change will create increased property transaction costs, it brings fair and transparent property values and greater revenue collection for local government authorities.

For purchasers, vendors, and financiers, knowing what the amended Circle rates in Noida regard is essential in making good decisions. As the new rates come into play, stakeholders should remain in the loop with up-to-date, new information and keep in mind the long-term benefits of an open and fair valuation system. This change will not only provide better clarity around the market's current valuations but, more importantly, will help set the stage for further stability, growth, and development in the region.

Also Read: Circle Rates in Delhi: A Complete Guide for Homebuyers