Analysts and developers said the move will adversely impact demand in an already subdued market.
The proposal by the Gautam Buddh Nagar administration to raise circle rates in Noida and Greater Noida could have a bearing on the housing market, which has been gradually coming out of the Covid-induced disruptions. Analysts and developers said the move will adversely impact demand in an already subdued market.
The district administration generally conducts the annual exercise of revising circle rates in July and notifies them in August. For FY22, the district administration through a notice has asked the public and stakeholders to offer suggestions on the proposed rates. Circle rate is the minimum value at which a property can be bought or sold.
For category A+ areas like Noida Sector 15A, the administration has proposed a rate of Rs 1,94,250 per sq mtr, against the present basic rate of Rs 1,03,500 per sq mtr. Similarly for category B areas like Sector 12 and Sector 22, the rate is proposed at Rs 72,000 per sq mtr from Rs 52,500 per sq mtr.
Increased circle rates will result in a higher stamp duty and registry charges making properties costlier. At present, the government charges 5% of the total property value as property fee in Gautam Buddh Nagar.
Anarock Property Consultants chairman, Anuj Puri said the proposal to raise circle rates in Noida, Greater Noida and along the Yamuna Expressway by as much as 40% and additionally apply a 5-12.5% surcharge on properties along the metro route or near the expressway could not have come at a less ideal time.
The NCR market has only just begun recovering from the dual impact of the lockdowns. A softer pricing regime would have encouraged more buyers as they are still struggling with the economic impacts of Covid-19, he added.