Lucknow Circle Rate Set To Rise From August 1: What It Means For Buyers And Sellers

Last Updated:July 07, 2025, 14:34 IST

Lucknow will raise property circle rates from August 1, 2025, making buying costlier. The last revision was in 2015. Buyers should act before the hike to save on fees.

Lucknow Circle Rate: After a decade, the Lucknow district administration is set to increase the circle rate for properties in the district, making buying the properties costly, The new circle rates will be effective from August 01, 2025. The administration has announced new circle rates under the Uttar Pradesh Stamp (Valuation of Property) Rules, 1997, and its subsequent amendments.

The administration revised the circle rates last time in 2015.

What Is A Circle Rate?

Circle rate is the minimum price at which a property (land, apartment, house, etc.) can be registered during a sale or transfer, as decided by the state government or local development authority. It is in price per unit area (usually per square meter or square foot). It is also known as the guideline rate, ready reckoner rate, or collector rate in different regions.

It helps in calculating stamp duty and registration charges during property transfer. Moreover, it helps to maintain record for property’s selling and transfer to account for taxes.

Market value of a property can be different than the circle rate. Stamp duty and registration fee is often calculated on the highest value of either circle rate or market value.

Circle rate helps to ensure that stamp duty and registration fees are based on a minimum value, preventing underreporting of property prices to evade taxes.

For instance:

Calculation Example: For a 100 sq.m. flat in Gomti Nagar with a circle rate of Rs 50,000 per sq.m.

Property value = 100 × Rs 50,000 = Rs 50,00,000

Stamp duty (7%) = Rs 3,50,000

Registration (1%) = Rs 20,000 (capped)

Total cost (assuming market price

equals circle rate) = Rs 50,00,000 + Rs 3,50,000 + Rs 20,000 = Rs 53,70,000

What Are Advantages for Investors Who Want To Sell Property?

Sellers may seek higher prices for property sell by justifying the new higher circle rate.

When selling a property, capital gains tax is calculated on the difference between the sale price and the acquisition cost (adjusted for inflation via the Cost Inflation Index). If the sale price is close to or slightly above the new circle rate, the taxable gain may be lower compared to selling at a significantly higher market price in a low-circle-rate scenario.

Buyers Should Hurry Up Before August 01

As said earlier, the higher circle rate will push up the property prices in Lucknow, making it costlier to purchase property after August 01.

Stamp duty (7% for men, 6% for women) and registration fees (1%, capped at Rs 20,000) are calculated on the higher of the circle rate or market price. By purchasing before August 1, buyers can use the current, lower circle rates, reducing their overall transaction costs.

Advantages for Those Using Property As Collateral for Loans

Banks and financial institutions assess property value based on the circle rate or market value, often taking the lower of the two for loan-to-value (LTV) calculations.

Banks may take time to adjust their valuation models to the new circle rates. Buying before August 1 allows buyers to secure loans based on current circle rates, which are lower and may result in quicker approvals and better LTV ratios.

Varun Yadav

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More

Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More

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