Lucknow Joins India's Top 10 Most Expensive Cities: Property Prices Surge
Lucknow has entered the list of India's top 10 most expensive cities following a significant increase in circle rates. Property prices in the city have sharply risen, placing it third in Uttar Pradesh. The new rates have made real estate in Lucknow more costly, with only Noida and Ghaziabad ahead in the state.
LucknowProperty PricesReal EstateCircle RatesUttar PradeshReal Estate MumbaiAug 10, 2025
Several major cities in Uttar Pradesh have updated their circle rates. These include Noida, Ghaziabad, Kanpur, Varanasi, Prayagraj, Agra, Jhansi, Meerut, and Bareilly. The new rates bring property prices closer to those in bigger metro cities, making real estate more costly.
The picture is of Lucknow-Sitapur highway. In Lucknow, land rates are based on their proximity to roads. Currently, Noida is the most expensive city in Uttar Pradesh. Ghaziabad is second, having overtaken Lucknow, which now stands third. This is a change from earlier rates when Ghaziabad was behind Lucknow.
In Lucknow, land prices depend on how close the property is to main roads. The biggest increases happened in both residential and commercial areas. Prices rose by about 30% in commercial zones. Residential zones saw a rise of up to 130%. For example, in affluent areas like Gomti Nagar, the rate jumped from Rs 33,000 to Rs 77,000 per square metre.
Rising property prices have hit buyers hard. While Noida and Ghaziabad had high rates earlier due to their location in the National Capital Region (NCR), now cities such as Lucknow, Varanasi, and Prayagraj are also becoming expensive. This rise makes it difficult for average buyers to afford properties in good locations.
Property experts in Lucknow say this update was overdue but essential. Many areas already had market prices close to the old circle rates. This gap allowed for tax evasion and unfair practices. The new rates will increase government revenue and make property transactions more transparent.
Frequently Asked Questions
What are circle rates?
Circle rates are the minimum prices at which the government allows the sale and registration of property. They are used to calculate stamp duty and registration charges.
Why did Lucknow enter the list of India's top 10 most expensive cities?
Lucknow entered the list due to a significant increase in circle rates, which brought property prices closer to those in bigger metro cities.
Which cities in Uttar Pradesh are more expensive than Lucknow?
Noida and Ghaziabad are more expensive than Lucknow in terms of property prices.
How do the new rates affect property buyers in Lucknow?
The new rates have made property more expensive, making it difficult for average buyers to afford properties in good locations.
What is the purpose of updating circle rates?
The purpose is to bridge the gap between market prices and official rates, increase government revenue, and make property transactions more transparent.
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