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New circle rates in Lucknow have resulted in price hikes of up to 40% for land, homes, and commercial properties. This will make property purchases more expensive across the city
These revised circle rates will influence the calculation of stamp duty and registration fees, leading to higher costs for property buyers across the city. (News18)
Properties in Lucknow are set to get costlier with the circle rates for the city revised for the first time in 10 years. The change, affective August 1, will impact the city’s real estate market, affecting both buyers and sellers alike.
Details Of The New Circle Rates
The Lucknow District Administration has introduced updated rates for 77 major roads and 26 authorised colonies across the city. The increases are as follows:
- Agricultural land: Up by 15%
- Commercial properties: Up by 25%
- Flats in multi-storey buildings: Up by 20%
- Commercial establishments (shops, offices, warehouses): Up by 20%, with some areas experiencing rises of up to 40%.
These increases are aimed at correcting valuation discrepancies dating back to 2015.
Impact On Key Areas In Lucknow
The revision has made Gomtinagar the most expensive area in the city, with circle rates ranging from Rs 7,100 to Rs 7,500 per sq ft. Other prominent areas include Mahanagar with fixed circle rate of Rs 6,043 per sq m and Indiranagar having circle rate of Rs 6,000 per sq ft.
In contrast, areas like Anantnagar and Santushti Enclave have lower circle rates.
Driving Factors Behind The Increase
The District Administration reports an average 25% rise in the price of non-agricultural land. This increase is driven by the city’s rapid urbanisation, improved infrastructure, and growing property demand.
Transparency And Prevention Of Undervaluation
Rakesh Kumar, the Additional District Magistrate (Finance), stated that the primary aim of this revision is to ensure greater transparency in property transactions and prevent undervaluation.
Under the new rates, plots for commercial use will be valued 50% higher than non-agricultural land if they are clearly designated as commercial in the city’s master plan.
How To Check The New Circle Rates
The updated circle rates can be accessed on the official Lucknow NIC website or checked at the Assistant Inspector General Registration offices or Sub-Registrar offices.
Effect On Property Purchases And Fees
These revised circle rates will also influence the calculation of stamp duty and registration fees, leading to higher costs for property buyers. While experts believe this will bring greater transparency to the real estate market, it also means buyers will need to spend more.
The revised circle rates in Lucknow are a significant step towards ensuring transparency in property transactions, although it will lead to increased costs for buyers and investors.
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