Two days after the Noida authority hiked land allotment rates, Uttar Pradesh registry and stamp department on Wednesday said that it is expected to increase circle rates of all kinds of properties.
Hike in circle rate will mean that thousands of buyers will have to pay more for a flat, plot and other kinds of properties. The new circle rates will be effective from August 1, 2014. Circle rates are likely to be hiked up to 10-15%.
Last year, circle rates were hiked from 20-35 percent.
Officials at the registration department said that increase in circle rate will mean that buying a property in Noida, Greater Noida and Yamuna Expressway (a separate industrial township being developed along 165 km long Yamuna Expressway) will be costlier.
“Circle rate increase will hit hard the most to the middle class home buyers because property cost is already out of reach for middle class buyer. Increasing circle rate each year is affecting the middle class to larger extent,” said Ravi Chauhan a realty consultant in Noida.
Realtor demanded that circle rates should be cut down so that prices can be in reach to middle-class.
“Circle rates are not realistic in district. As a result, registry dept has failed to fulfill its annual target. Gautambudh Nagar’s 2013-14 revenue target is Rs 1536.60 crore. But the department have managed to generate only Rs 1083 crore owing to the fact that circle rate is too high,” said a realtor, requesting anonymity.
The circle rates precisely in group housing and commercial properties needs to be cut down demand realtors.
“Registry and stamp department is conducting a survey of all category of properties. The department is also studying recent hike in allotment rate in Noida and Yamuna Expressway area. We will have our meeting on this survey on June 6. If circle rate in commercial category is unrealistic then we will look into it and take appropriate action,” said AV Rajamauli district magistrate (DM), Gautam Budh Nagar.
According to realtors, the circle rates in Noida are unrealistic. In some cases market rates are below than the prevailing circle rates in Noida and the buyer has to pay income tax on that gap.
Earlier, circle rates used to hiked only once in two years. But since 2013, government changed norms and can hike rates once in a year.