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As Lucknow gears up for a significant revision in DM circle rates the first in nearly a decade the Lucknow Development Authority (LDA) has opted to maintain existing property prices for its flats and plots. This move ensures that upcoming schemes such as Anant Nagar and ongoing allotments under the first-come-first-served policy remain unaffected by the hike. With circle rates rising by 15-25% in several localities, LDA's decision provides immediate relief to homebuyers, shielding them from increased registration costs and making government housing a more attractive option amid surging land values.
While property buyers in Lucknow brace for higher acquisition costs due to the recently approved hike in DM circle rates, the Lucknow Development Authority (LDA) has announced that it will keep its own property rates unchanged. This means the prices of both newly launched and existing schemes will remain steady, despite the district administration's move to revise government-mandated circle rates after almost ten years. Advertisement
The LDA clarified that its decision would apply to plots and flats across all schemes, including those currently being allotted under the first-come-first-served model as well as upcoming projects like the Anant Nagar Housing Scheme. According to LDA officials, the board has formally agreed to freeze sector rates for a period of one year, giving buyers a clear window to make purchase decisions without concern over impending rate fluctuations.
Even though the new DM circle rates used to calculate stamp duty and registration charges will soon come into effect, buyers of LDA-owned properties won't bear the additional cost burden. In key urban areas like Gomti Nagar, Mahanagar, Indiranagar and parts of Alambagh, circle rates are reportedly rising by 15% to 25%. However, the LDA's fixed pricing shields allottees from these increases, effectively offering properties below the new market benchmarks.
This decision comes at a time when many private developers may be forced to adjust their pricing or pass on higher transactional costs to buyers. In contrast, LDA's properties stand out as relatively more affordable, especially given that the revised circle rates reflect the city's expanding real estate footprint, infrastructural improvements, and overall market appreciation.
The unchanged pricing structure is expected to enhance the appeal of LDA properties and may also benefit existing allottees. Owners of previously purchased LDA plots could potentially see an appreciation in resale value, as market rates in surrounding private areas rise. Moreover, the circle rate hike has not affected industrial zones or certain rural areas within the city limits, maintaining cost predictability for small businesses and industrial developers.
From a broader perspective, the circle rate revision was long overdue. The last update took place around 2015, and in the intervening years, Lucknow has witnessed substantial development-from new expressways and metro extensions to rapidly growing residential hubs. The hike aligns official valuations with actual market dynamics and helps the administration generate more revenue through stamp duty and registration fees.
Neighboring districts like Ayodhya have also undergone similar revisions in recent months, with local authorities bringing government rates in sync with ground realities. In this context, Lucknow's update was not only expected but necessary. What distinguishes the LDA's position is its willingness to insulate buyers at least for now from these adjustments, offering a price cushion when broader market costs are rising.
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