Homebuyers in for trouble in Noida? Circle rates set to be hiked

By: | Updated: July 25, 2016 5:42 PM

In line with Noida authority's decision to hike land allotment rates by upto 11 per cent, the Gautam Budh Nagar administration last week proposed 9-11 per cent circle rate hike in some areas of Noida and Yamuna Expressway residential areas.

Noida real estate - circle rates

In line with Noida authority’s decision to hike land allotment rates by upto 11 per cent, the Gautam Budh Nagar administration last week proposed 9-11 per cent circle rate hike in some areas of Noida and Yamuna Expressway residential areas.

At a time when Noida is reeling under inventory overhang, delayed projects and low sales, a proposal to hike circle rates would not go well with the homebuyers and would dampen sentiments further. In line with Noida authority’s decision to hike land allotment rates by upto 11 per cent, the Gautam Budh Nagar administration last week proposed 9-11 per cent circle rate hike in some areas of Noida and Yamuna Expressway residential areas. Those sectors in Yamunna Expressway could witness a 9.5 per cent hike in circle rates where the Yamuna expressway authority have raised the circle rates.

Akhilesh Dubey, Assistant Inspector General (Stamps and Registration), Greater Noida told feonline, “We are not raising the circle rates overall, but the rates will be in increased in the areas, where Noida or Yamuna Expressway authority have raised the land allotment rate in a bid to reduce the revenue deficiency and bring it in par with the authority rates.”

A hike in circle rate would mean buyers would have to spend more for property registration. The proposal was released on July 18 and general public and developers have been asked to file objections till July 25.

“Not much opposition/response has been received till today (July 25),” Dubey told feonline.

Experts have criticised the Gautam Budh Nagar administration’s proposal to hike circle rates in Noida and Yamuna Expressway areas. Amit Modi, director, ABA Corp and vice-president, CREDAI Western UP said, “Government has already decided to implement the 2 per cent hike in stamp duty (from 5-7 per cent) and increasing circle rates will definitely give major setback to buyers planning to invest in the region, especially the real and first time investors with limited means, who may either delay or put off their investment decision for the want of more funds.”

The Haryana government last month announced cut in circle rates by 15 per cent in Gurgaon to revive the real estate market.

According to first half yearly report by Knight Frank India, prices in NCR witnessed a 4 per cent correction and a sharp 41 per cent decline in new launches during the same period. Further, delays in residential projects has shaken consumer confidence in the sector.

Modi added that instead of circle rate hike, the present scenario in the NCR market should have been supplemented with some relief to reduce the unsold inventory load, on the macro scale it would have benefited the state exchequer as well by bringing in crores of rupees in mass property registration, which had been held back for a considerable time.

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