Lucknow, Uttar Pradesh, August 1, 2025 – In a landmark move, the Lucknow district administration has introduced a dedicated industrial category within its updated circle‑rate framework, aimed at better aligning land valuation with actual land use. Alongside this, it has significantly lowered rates in certain industrial zones, reductions of up to 40 percent have been made compared to previous residential or commercial benchmarks.
This new categorization comes as part of the broader circle‑rate revision implemented on August 1, 2025, the first update in a decade. Circle rates now reflect real estate trends and will directly impact stamp duty and registration fees on property transactions in Lucknow. Generally, residential and commercial rates rose by 15–25 percent, while industrial land in some areas saw notable reductions where market realities did not justify higher rates.
Authorities say the industrial category was created to shield manufacturers, warehouses, and factory zones from undue tax burden. “Where plots are clearly being used for industry or logistics rather than commercial or residential use, we have brought circle‑rates down by as much as 40 percent,” an official explained. This move is meant to foster further industrial investment in and around Lucknow.
Key Highlights of the New Rates
a. Major uptick for residential properties along 67 identified arterial roads and colonies, with rates increasing by 20 percent or more in high‑growth zones such as Gomti Nagar, Indiranagar, and Vibhuti Khand. For instance, Gomti Nagar rates rose to as high as ₹77,000 per square metre, while Indiranagar surged from ₹27,000 to ₹62,000 per square metre, and Vibhuti Khand moved from ₹40,000 to ₹70,000 per square metre.
b. Industrial zones especially on the outskirts and near expressways—have their own category. Prices there are lowered where existing use doesn’t align with premium residential/commercial valuations.
c. Rural areas and agricultural land have seen more moderate increases, typically in the 15 percent range.
Why This Matters
This revision affects how much stamp duty and registration fees homebuyers, businesses, and developers will pay, as these charges are based on circle‑rates or actual sale price, whichever is higher. With the introduction of a distinct industrial rate, businesses may now find land in industrial estates or corridors more affordable for investment.
India’s Uttar Pradesh Defence Industrial Corridor (UPDIC) already includes a considerable land component near Lucknow. Lower circle rates for industrial use could accelerate industrial land allocation and boost job creation, particularly as UPDIC aims to become fully operational by November 2025.
What Residents and Buyers Should Do
Property buyers and industrial developers should review the new circle‑rate list available on the official Uttar Pradesh Stamp and Registration (IGRS) portal or at local sub‑registrar offices. Those considering purchases prior to August 1 who have already signed preliminary agreements may want to verify cost implications now that the revised rates have come into force.
