However, actual property transactions often surpass these rates. If the revised rates are approved, property buyers will face higher stamp duty, increasing overall transaction costs.

Assistant Inspector General Shashi Banu Mishra batted for the revision, and he said: “Noida’s real estate market has expanded quickly, yet the circle rates have not been adjusted accordingly. This proposed revision aims to correct that imbalance and bring the rates in line with current property values.”

What are circle rates?

Circle rates (guideline values or ready reckoners rates) are the minimum rates the government fixes for property transactions.

These are essentially the baseline values at which a property, whether a residential apartment, corporate building, IT park, or agricultural land, can be registered in a particular area.

The government determines these rates after analyzing various factors, such as location, infrastructure, amenities, type of property, and market trends.

Key Highlights about Circle Rates

1. Purpose: Circle rates are used to calculate stamp duty and registration charges when buying or selling properties. This helps the government collect revenue from property transactions and prevent property under-declaration.
2. Regional Variation: Circle rates differ from locality to locality. For example, the rates will be higher in highly developed cities than in villages or underdeveloped sectors. This is done to reflect the difference in property values across a region.
3. Market Value vs. Circle Rate: A property's market value is always higher than circle rates. However, the government periodically revises circle rates to keep up with property values and market trends in particular areas.
4. Impact on Buyers and Sellers: Higher circle rates always lead to high stamp duties and registration fees. Even if the property's market value is lower than the circle rate, the buyer is still required to register the property at the higher circle rate, which technically leads to higher taxes.

Noida’s Unstoppable Growth as a Residential Paradise

Despite the expected hike in circle rates, Noida continues to be a preferred residential destination, especially when compared to Delhi. Noida, short for New Okhla Industrial Development Authority, was initially developed to promote industrial growth. However, the city has evolved over the past two decades into a major residential and commercial hub thanks to its strategic location, planned layout, and progressive governance.

Noida is home to high-end luxury condominiums, affordable housing projects, top-tier educational institutions, and world-class healthcare facilities, making it a popular choice for families and working professionals.

• Additionally, Noida has emerged as a hub for the IT and business sectors, drawing professionals and entrepreneurs nationwide.
• The city’s growing employment opportunities have increased the demand for quality housing, resulting in diverse residential projects.
• Noida has something to offer everyone, whether it’s luxury apartments with state-of-the-art amenities or budget-friendly housing solutions.
• The city’s steady growth in commercial real estate, with large office spaces and IT parks, has also contributed to rising property values.

Why Noida Is Winning Over Delhi’s Residents

While Delhi remains the national capital with unmatched historical significance and political prominence, Noida is people's first preference. In Delhi, residents often encounter problems such as traffic, congestion, pollution, and unplanned growth. The city’s aging infrastructure and massive population have made it increasingly difficult for residents to enjoy a high quality of life.

• In contrast, Noida’s modern infrastructure, planned growth, and organized residential zones present a more appealing living environment.
• Noida’s pollution levels are relatively low compared to Delhi’s due to its green spaces and systematic development, making it a healthier choice for residents.
• The cost of living in Noida is often more affordable than in Delhi, particularly in terms of property prices and rentals.
• While luxury apartments and high-end villas are also available, Noida offers a wide range of affordable housing options, catering to diverse economic segments.

Conclusion

As Noida prepares for a 20%–30% hike in circle rates in Greater Noida, buyers and sellers are left grappling with mixed emotions. While some people see it as an opportunity for long-term investment, others express valid concerns about affordability and market stability.

The true impact of this decision will unfold over the coming months as buyers and sellers navigate the changing landscape of Noida’s real estate market.

Even though the circle rate or market value will change, people still prefer Noida as their first choice for work and cost-effective living.