District Magistrate in Lucknow expected to revise the circle rates

With the district administration already begun its exercise of revising the circle rates after a period of two years, a price hike is expected once the revised rates are out. The revised property rates in India are expected to roll out in August.

According to the district magistrate, Kaushal Raj Sharma, the government has suffered financial loss as the circle rates remained unchanged for a period of more than 2 years in this booming economy. So it has been a dire necessity now that the rates get revised if not all then at least for the city areas. Besides some officials even speculate that there would be a change in the calculation formula as well. A steep hike in prices can be witnesses in areas such as Hazratganj, Gomtinagar, Aminabad, Mahanagar, Quiserbagh, and similar other places. Besides the rates of the property in the areas surrounding the expressway may even multiply as they have seen considerable growth and development in the past couple of years. The rural areas will, however, require a lesser amount of revision comparatively. So if you are considering an investment in a property in India you may rightfully choose Lucknow as your investment destination to have a rapid growth in your investment value.

The ‘District Magistrate circle rates’ of any property be it commercial or residential, are fixed upon by the District Magistrate which is based primarily upon the demand of a property in an area. This demand is ascertained by a survey carried out in various areas of the city by the district administrative officers in Lucknow. As reported by the District Magistrate of Lucknow, A thorough survey of the various areas in the city will be carried out before the final revision of the circle rates is released. The last revision that took place was in 2015. And that time there was a downward revision in the property rates in India. Under the said tax revision, the commercial property taxes saw a downfall of 20-30%. The areas such as Hazratganj, Gomtinagar, Aminabad, Mahanagar, Vibhuti Khand, Rae Bareli road, and others also witnessed a massive downfall in the rates of the commercial property.

However, during the 2015 revision, the non-agriculture land witnessed an increase by 5-10 per cent and 20-25 per cent hike in the areas that fell within 8 km radius of the Municipal Corporation limits of Lucknow. The revision of rates after that could not be possible due to the ongoing projects like the Purvanchal Expressway and the outer ring road. But as the said issue has been resolved now and the real estate in India is in its boom phase currently, all the properties can expect a hike in the circle rates whether its commercial properties or residential properties. Some liberation can be expected in the property rates in rural areas as compared to the cities.