In this paper, the local and average heat transfer coefficient enhancement or deterioration, and rise in pumping power in steady, laminar alumina–water, titania–water, and carbon nanotube (CNT)–water nanofluids flow in a horizontal circular tube subjected to constant heat flux at the outer wall have been investigated numerically based on a new variable property nonhomogeneous flow model which takes into account agglomeration of nanoparticles. The results have been compared with the published experimental results of Utomo et al. (Utomo, A. T. et al., 2014, “The Effect of Nanoparticles on Laminar Heat Transfer in a Horizontal Tube,” Int. J. Heat Mass Transfer, 69, pp. 77–91.) using various property models of thermal conductivity and viscosity, and for equal Reynolds number, equal inlet velocity, equal mass flowrate, and equal pumping power of nanofluid and base fluid. Stream function–vorticity–temperature formulation and finite difference method have been used. Using the same Reynolds number of nanofluid and base fluid gives much higher enhancement in average heat transfer coefficient as compared to other modes of comparison. Interestingly, the criterion of equal pumping power gives negative percent enhancement in the case of CNT–water nanofluid. The pumping power is found to rise for all three nanofluids. It is found that consideration of agglomeration of nanoparticles has produced improved accuracy in the numerical solution.