Realty to get pricey as Ghaziabad proposes 10% hike in circle rates

The district administration has proposed a 10-15% hike in the existing circle rates and has given around a week’s time to residents to file objections, if any, regarding the proposed rates, said officials adding that the last time a similar hike was proposed in 2016.

In 2016, the administration had proposed an average hike of 5-10% in circle rates for all localities across the district.

Thereafter, the rates were increased randomly for some localities in the subsequent years. In 2020 and 2021, the hike was almost negligible due to the Covid-19 pandemic.

However, the average 10-15% hike proposed this year is uniform for all localities spread across the district, said officials adding if the proposed hike comes into effect, the circle rates in some localities will increase by 5% while for others, it will increase by 20%.

District officials, including the sub-registrars, tehsildars and lekhpals, have conducted a survey of all the localities, even in the rural areas of the district, following which a committee of officials proposed an overall average hike.

“The proposed average hike of 10-15% is comprehensive and a similar hike was last taken up in 2016. In between, there was no generic increase, except for some localities where it was needed. We have invited objections on the proposed hike, after which the new rates will come into effect from August 8,” said Vivek Srivastava, additional district magistrate (finance).

The move indicates that buying and selling properties in Ghaziabad will become more costly if the proposed hike in circle rates comes into effect. The circle rate issued by the district magistrate is the minimum rate on which a property is sold and the same rates are taken into consideration during registration of properties.

According to the average hike proposed by the district administration, the circle rates prevailing in different pockets of Indirapuram is anything between ₹66,500-73,100 per sqaure metres (sqm) depending on the location of properties on different road widths (up to 9 metres, 9 metres to less than 18 metres and more than 18 metres).

If the average hike in circle rates proposed by the district administration comes into effect, the rates will range from ₹78,000 to ₹86,000 per sqm.

In Kaushambi, the circle rates are currently in the range of ₹72,500-79,700 per sqm. The average hike will take the circle rates to ₹85,000-95000 per sqm on the basis of different road widths.

Likewise in Vaishali, the prevailing circle rates are in the range of ₹67,500- ₹74,200 per sqm and these will go up to ₹80,000-88000 per sqm.

Generally, the development agencies, such as the Ghaziabad Development Authority or the Uttar Pradesh Housing Board sell the properties on their defined rates, which are termed as sector rates. Any subsequent sale is taken up on circle rates.

The average hike in circle rates has been proposed for both city and rural areas this financial year.

Experts said the proposed hike in circle rates should not be brought into effect immediately as it will impact middle class buyers.

“The real estate industry is going through a rough phase due to the impact of the pandemic and if circle rates are increased, the market sentiment will get weaker. It is already on the lower side due to hike in the rate of interest for housing loan. The proposed hike will not impact the high-end buyers but it will affect the middle class buyers,” said Gaurav Gupta, secretary of The Confederation of Real Estate Developers’ Associations of India (NCR).

Officials familiar with the matter said that prime areas such as Indirapuram, Kaushambi, Vaishali, Brij Vihar, Ramprastha etc, have seen rapid housing growth and have become saturated.

“The upcoming projects are now coming up near Raj Nagar Extension, Delhi Meerut Road along the alignment of Regional Rapid Transit System, Muradnagar and Modinagar. Apart from the hike, any property having roads on both sides will see an increase in rates from the existing 8% to 10%. For properties which face a park and have roads on both sides, the rates have been increased from 16% to 20% as per the proposed hike,” said an officer from the stamps and registration department who did not wish to be named.