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Property transactions in Lucknow are about to get costlier as the district administration has proposed a substantial revision in circle rates base rates used to determine property registration value. While the average increase is pegged at 15%, certain high-demand urban areas could see hikes of up to 25%. Rates for multi-storey construction and commercial land are also being revised upward, with a clear aim to align them more closely with market realities. The proposed hike is currently open for public feedback and, once finalized, will come into effect from the beginning of August. The last revision in circle rates was done nearly a decade ago.
After nearly a ten-year gap, Lucknow?s district administration has proposed a revision in circle rates that could push up property values across the board. According to officials, circle rates for residential properties are likely to increase by an average of 15%, while land parcels along newly developed urban zones and arterial roads are looking at a 25% jump. In addition, the construction rate for flats and apartments is being increased by around 20%, a move that will directly impact the cost of high-rise housing in the city. Advertisement
Senior revenue department officials have stated that this hike is long overdue. In its current form, the existing circle rate structure no longer reflects the pace at which Lucknow's property market has grown over the past decade. The update is intended to bridge the gap between official rates and prevailing market prices a gap that often leads to underreporting of transaction values and undervaluation of properties during loan assessments.
Localities like Gomtinagar, Gomtinagar Extension, Jankipuram, Indiranagar, Mahanagar, and Aliganj will see the sharpest revisions. As per the proposal, circle rates in prime areas such as Gomtinagar are likely to range between INR 7,100 and INR 7,500 per sq ft. Mahanagar and Indiranagar are expected to touch INR 6,000 per sq ft, while Jankipuram may cross the INR 5,000 mark. Officials also noted that the 20% hike in construction cost for multi-storey buildings is meant to reflect increasing input and labour costs in the sector.
In the case of commercial properties, both land and built structures will see a 20% rise in circle rates. Commercial plots will now carry a 50% premium over standard non-agricultural land. This means that commercial properties in busy commercial belts especially near key crossings, highways, and transit corridors will now attract significantly higher registration costs.
The proposed changes have been formally notified, and citizens can submit their objections and suggestions over the next two weeks either in writing or by email. After the public response window closes, the administration will review and finalize the rates in about ten days. These will then be implemented starting from the first week of August.
Officials have also clarified that the new rates are applicable only to residential, commercial, and non-agricultural plots. Agricultural land has been excluded from this revision.
This update in Lucknow follows a trend seen in other major cities across Uttar Pradesh. Ayodhya, Varanasi, Prayagraj, and Gorakhpur have all undertaken significant revisions in circle rates earlier this year to bring them in sync with their rapidly expanding property markets. In Ayodhya, for example, circle rates were hiked by over 200% in some areas following the inauguration of the Ram Mandir, resulting in a direct surge in land value.
A senior official from the Department of Registration and Stamps noted that updating circle rates also has a legal and fiscal benefit bringing transparency into property transactions, reducing the need for under-the-table payments, and ensuring buyers can avail loans based on realistic valuations.
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