Noida realtors mount opposition against dual hike in circle rates
The proposed dual hike in circle rate and allotment rate by stamp and registry department is another setback for both buyers and real estate developers of Noida. As the proposal came within days of the three development authorities (Noida, Greater Noida and Yamuna Expressway) hiking property rates by up to 30 per cent, real estate players are up in arms.
This is the second consecutive year when circle rates - the base rate for buying and selling any property has been increased. For residential areas proposed hike is between 17 to 20 per cent and for commercial and industrial areas its 27 to 35 per cent.
"Narrowing the gap between market rate and circle rate is a positive step as it will promote flow of white money and prevent people from resorting to tax evasion. But, it will hit buyers, as they will have to shell out more money in the form of stamp duty charges," says Manoj Gaur, president of the Confederation of Real Estate Developers' Associations of India - western UP.
But the bigger problem in all this is the new hike in allotment rates or the rate at which developers buy land for their projects. Allotment rates for group housing and residential properties have been increased by 15 per cent and commercial and industrial land by 30 per cent and 11.25 per cent, respectively, in Noida region. Greater Noida Authority hiked allotment rates for land across all categories, except industrial, uniformly by 8.53 per cent. Yamuna Expressway Authority has upped allotment rate by 15 per cent.
Hike in allotment rates is been seen as extra burden being put upon developers who are already reeling under input cost pressures, regulations and high inventory.
The proposed dual hike in circle rate and allotment rate by stamp and registry department is another setback for both buyers and real estate developers of Noida. As the proposal came within days of the three development authorities (Noida, Greater Noida and Yamuna Expressway) hiking property rates by up to 30 per cent, real estate players are up in arms.
This is the second consecutive year when circle rates - the base rate for buying and selling any property has been increased. For residential areas proposed hike is between 17 to 20 per cent and for commercial and industrial areas its 27 to 35 per cent.
"Narrowing the gap between market rate and circle rate is a positive step as it will promote flow of white money and prevent people from resorting to tax evasion. But, it will hit buyers, as they will have to shell out more money in the form of stamp duty charges," says Manoj Gaur, president of the Confederation of Real Estate Developers' Associations of India - western UP.
But the bigger problem in all this is the new hike in allotment rates or the rate at which developers buy land for their projects. Allotment rates for group housing and residential properties have been increased by 15 per cent and commercial and industrial land by 30 per cent and 11.25 per cent, respectively, in Noida region. Greater Noida Authority hiked allotment rates for land across all categories, except industrial, uniformly by 8.53 per cent. Yamuna Expressway Authority has upped allotment rate by 15 per cent.
Hike in allotment rates is been seen as extra burden being put upon developers who are already reeling under input cost pressures, regulations and high inventory.
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