The Noida Authority has issued an order mandating that the registry of flats will now be on the ‘carpet’ area — much to the relief of countless homebuyers who have long been demanding that the registry of a flat should not be determined by the ‘super area’ — a factor that gives scope to developers to escalate the cost of apartments.
Hailing the order, industry experts said the move will reduce registration fee cost for the flats and lower the overall property acquisition cost of homebuyers.
Santhosh Kumar, Vice Chairman, ANAROCK Group, said, “This order by the Noida Authority will bring much relief to homebuyers as it will reduce their registration fee cost for the flats and thereby lower their overall property acquisition cost. Already RERA had mandated earlier that developers sell flats based on the carpet area instead of the super built-up area. However, even while developers did mention the carpet area but there was ambiguity when it came to the registration of flats. It was mostly charged on the super area. With this order now, absolute clarity has been provided and homebuyers are set to benefit from this.”
Some experts, however, feel that the move will not bring any difference to the overall apartment price, or the revenue earned by the government registration department.
Amit Modi, Director, ABA Corp, and President (elect), CREDAI Western UP, said, “We appreciate the authority’s thought behind introducing this measure, although after the introduction of RERA guidelines most of the developers have already switched to these norms and have updated their prices. If we look at the ground reality, this won’t be bringing any difference at all to the overall apartment price, or the revenue earned by the government registration department and the government exchequer. As a group we had already implemented this in accordance to RERA guidelines and will be happy to continue the same.”
Some developers also feel that the overall price of the units will remain the same.
“The per sq ft cost might increase, but the overall price of the units will remain the same. There will be no burden on the buyers with this announcement. However, it will help the buyer know the actual size of their units,” said Dhiraj Bora, Head-Marketing & Communication, Paramount Group.
Yash Miglani, MD, Migsun Group, said, “This is yet another step by the authority to streamline the sector. We do not see any impact on the price of units, as developers will increase the cost to accommodate the expenses incurred on common areas, but the price paid by the buyers will remain the same.”