Buying land or a flats in Noida, Greater Noida or along the Yamuna Expressway may soon get costlier as the stamp and registry department has proposed to increase the circle rates by up to 35%. This proposal comes within days of the three development authorities hiking property rates by up to 30% after their board meeting on May 25th.
Officials said the revised rates are likely to be implemented from mid-July. “We have proposed a hike between 17% and 35% in circle rates of all categories, including residential, institutional, industrial and commercial. While a hike between 17-20% has been proposed for the residential sector, institutional, commercial and institutional sectors will witness an increase in circle rates between 27% and 35%. However, the proposal is subject to clearance by the state government,” said SK Singh, assistant inspector general (AIG), registrar department.
“The proposal will be sent to the district magistrate who in turn will send it to the Allahabad head office. This entire process will take at least a month and a half to be passed. We expect the fresh rates to come into force by mid-July,” he said.
Officials said that the hike in circle rates of the residential category will be dependent on the lease rent of a property, the rates of which are varied. In some lease deeds, the authorities charge 1% as lease rent, while in others 2.5% is levied,” the official said.
The allotment rates for group housing, residential and institutional properties have been increased by up to 15% and commercial and industrial land by 30% and 11.25%, respectively, in the Noida region. The Greater Noida Authority hiked allotment rates for land across all categories, except industrial, uniformly by 8.53%. The Yamuna Expressway Authority has upped its allotment rate by up to 15%.
The hike in both allotment and circle rates means that buying a house or any other property in Noida, Greater Noida or Yamuna Expressway will cost more. However, real estate players said that this will be a good way to develop the region.
“Even after the proposed rates are implemented, properties in Noida, Greater Noida and Yamuna Expressway areas will still be affordable if compared with Gurgaon. For developing infrastructure there is a need of funds and that can only be generated by increasing rates,” said Amit Gupta, MD, Orris Infrastructure.