The proposed increase in circle rates,which has become a recurring feature,will seriously affect buyers and real estate developers of Noida,Greater Noida,and Ghaziabad.
The new circle rates,proposed in the range of 7-25 %,are to come into force from August 1,2013,for Noida,Greater Noida, and Ghaziabad.
The proposed raise in circle rates is another setback for buyers and real estate developers of Noida, Greater Noida, and Ghaziabad.
The new circle rate of Greater Noida West (Noida Extension),one of the most affordable regions for middle-income buyers of the NCR,will be Rs 28,000 per sq metre,up from the existing Rs 22,500 per sq metre.
The new circle rate will be effective with some changes like creation of V code for valuation of properties in the new areas,sectors,and villages,with extra charges (5% each) on facilities like gymnasiums,security,clubhouses,lifts,swimming pools,etc.
There has been little amendment in the existing UP Stamp Valuation Rules,1957,for the financial year 2013-2014 on the circle rates,especially in Ghaziabad and Gautam Budh Nagar (Noida-Greater Noida) districts.
S K Singh,assistant commissioner stamp of Gautam Budh Nagar, says,The revised rates are likely to be implemented from August 1 and the rates are going to be in the range of 7-15 % for residential property,12-25 % for industrial property,and 18-32 % for commercial property.
The proposed increase in circle rates will include all categories of residential,institutional,industrial,and commercial properties.The main reason for levy of an extra 5% charge on every facility is to achieve a revenue mopup target of Rs 1,535 crore in Gautam Budh Nagar.
In Noida-Greater Noida regions,the effective revision of circle rates is by nearly 40% since 2005,except for a lull during the period of recession in 2008-2009.
With fresh circle rates,the properties in Noida-Greater Noida and Ghaziabad regions will get costlier.The development authorities have already raised allotment rates recently.The allotment rates for group housing,and residential and institutional properties have been increased by up to 15%,while commercial and industrial land rates have been raised by 30% and 11.25%,respectively,in the Noida region.
The Greater Noida authority raised allotment rates for land across all categories uniformly,by 8.53%,excepting industrial land.
The Yamuna Expressway authority has raised its allotment rates by up to 15%.Allotment rates on industrial land in Greater Noida have been spared this time around,keeping in view the development of the region.
Anju Sharma,a PR executive,said: The increased circle rates means that buying a house or any other property in Noida,Greater Noida,Yamuna Expressway,or Ghaziabad will cost more.Ultimately,the burden will be borne by buyers like me.
Rakesh Yadav,managing director of Antriksh Group,says: This new revision will hit buyers,as they will have to shell out more money in the form of stamp duty charges.However,increasing allotment and circle rates will be a good way to develop the region as the local authorities will have more funds to build the local infrastructure.
Suneel K Rajput,managing director of Rajput Group,says: The new circle rates are going to affect the affordable segment in Noida. Small developers are dedicated to complete their project on time and need friendly environment to begin new projects,but these recurring revisions do not further the interest of buyers or developers.
S N Rai,assistant commissioner stamp (2) of Gautam Budh Nagar district,says: The proposed increase in circle rates will be close to 25%.The circle rates for residential properties are likely to be revised by 10-15 %,while commercial rates will be equivalent to the authoritys rate.To promote the industrial set-ups in Greater Noida,we have decided not to increase circle rates for industrial properties.
The district administration,as a policy,will make moderate revision to the rates in rural areas where the population is low,compared to regions where there are more land transactions,and prices are escalating.
After the new circle rates come into operation,prices of residential,commercial,industrial,group housing,builder’s area,etc,in Greater Noida West (Noida Extension ),Yamuna Expressway,and UPSIDC would go up on average by 15%.
Also,the circle rates in Greater Noidas Alpha,Gamma,and Beta residential sector are expected to be revised to Rs 24,000 per sq metre from Rs 22,500 per sq metre.
Development agency officials say that though the circle rates are proposed to be increased in rural and urban areas,the residential sector will see the maximum increase because of the huge transactions in the residential sector in places like Noida Extension,Noida-Greater Noida Expressway,Crossings Republik, Raj Nagar Extension,Indirapurams Shipra Sun City,etc.