Property prices in Noida to go up due to proposed hike in circle rates in Gautam Buddh Nagar

Property prices are doubtless to go up in Noida because the Gautam Buddh Nagar administration proposed to hike present circle rates by up to 40 per cent and likewise advised making use of a further 5-12.5 per cent surcharge on properties close to the metro route or close to the expressway.

The Gautam Buddh Nagar administration has proposed a further surcharge of 5 per cent on properties on the metro route and close to the metro stations, 7.5 per cent further surcharge on the sectors which lie on either side of the expressway and 12.5 per cent on sectors which fall close to each the metro station and expressway.

The proposed draft for growing the circle price has been uploaded on the web site of the district administration. Also, it has been made out there at many locations, together with the Registry Department and Tehsil Collectorate, the place individuals can register their objections concerning the circle rates.

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Rates already elevated in some locations

Some sectors of Noida, together with sectors 14A, 15A, 44, 19, 47 and 93 A and B, have been upgraded earlier, main to a circle price improve of just about 100 per cent. In Greater Noida, the district administration has proposed to hike the speed from Rs 28,000 per sq. metre to Rs 35,000 per sq. metre.

It will change into pricey to register property even in the sectors close to the metro stations and Noida Greno Expressway. In the type of a location cost close to the metro line, consumers can have to incur a 5 per cent further cost aside from the circle rates. While these buying properties close to the expressway pays an additional payment of seven.5 per cent. This improve can be relevant to properties aside from business and EWS or Shramik Kunj buildings.

RK Arora, president, National Real Estate Development Council (NAREDCO) mentioned, “Due to the increase in circle rates, the buyers may not invest in any property in the short term and may like to hold off their buying decision for now, which will affect the realty market as a whole.”

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Bad factor for enterprise?

He added, “Any increase in circle rate needs to be commensurate with the increase in the market rate of the property. Presently, there is already a great disparity between. market rate and the circle rate fixed for the district by the government. The circle rate kept on increasing by 10 per cent every year whereas the market remained almost stagnant, resulting in too much variation.

“The greater circle price is dissuading consumers from investing in actual property property, apprehending greater tax legal responsibility beneath Section 50(c)/56(2)x of the Income Tax Act due to the distinction between the precise value and circle price value of the property.

“We are just beginning to take steps to get back on track, but the recent move to increase circle rates in Noida might once again hamper the sector’s growth in the region,” mentioned Manoj Gaur, CMD at Gaurs Group and vice president-north at CREDAI National. He added, “An increase in the circle rate at this critical moment will prove detrimental.”

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Delhi authorities decreased circle price

The Delhi authorities just lately decreased the circle price by 20 per cent, trying to decrease the market price of properties in the nationwide capital area (NCR) and in order to scale back the burden on the frequent man and likewise to revive the true property sector.

NAREDCO has been persuading the Uttar Pradesh authorities to scale back the circle price in Gautam Buddh Nagar, retaining in view the influence of the already greater circle price and to be commensurate with the market price.

“We are disappointed to learn about the proposal of the District Administration to increase the circle rate instead of lowering it. We reiterate our demand to reduce the circle rate instead of proposing to increase the same,” RK Arora appealed to the Gautam Budh Nagar administration.

“We may also submit that real estate projects in Noida, Greater Noida and Yamuna expressways, which were once considered to be one of the major residential project hubs, have suffered a major setback due to the delays on account of land acquisition cases, work stop orders of NGT and recently due to the Covid-19 pandemic. Quite a large number of projects are on the brink of collapse due to a huge liquidity crisis. Their revenues have dried up due to the impact of these unprecedented developments. In these circumstances, the proposal to increase the circle rate would affect the demand for residential and commercial units,” the NAREDCO president added.

“Further, the increased circle rate will dissuade buyers from registering their properties, which would result in loss of revenue by way of stamp duty, to the state government and also the district administration. Considering the above, NAREDCO, on behalf of real estate developers of Gautam Buddh Nagar District, request you to reduce the circle rate and not to further increase the already higher circle rates.”

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