The Gautam Budh Nagar administration on Wednesday proposed a 15% to 25 % hike in circle rates in Noida and Yamuna Expressway areas. Circle rates for Greater Noida will not be increased, giving some relief to home buyers.
Circle rate is the minimum value at which the second sale or transfer of a property takes place. Since 2013, the rates are increased every year from August 1.
In Noida and Yamuna Expressway areas, circle rates for institutional property (corporate office plots) is proposed to be hiked up to 25%. For residential property, it will be hiked by up to 15%.
“We have proposed a hike in circle rates in proportion to a hike in land allotment rate done by the Noida and Yamuna Expressway authorities this year. The Noida authority had hiked land allotment rate up to 15% and the Yamuna authority up to 10% in residential category. We have tried not to burden property buyers. We have not increased rates for group housing,” said NP Singh, district magistrate.
The administration has invited suggestions and objections from the public till July 25. The new rates will come into effect from August 1.
The Ghaziabad administration too has proposed a 1% to 9% hike in circle rates of residential property in view of the slump in realty sector. The rates in Raj Nagar will be hiked from `51,000 per sqm to `55,000 per sqm. A hike of `500-1,000 will be effected in Kavi Nagar, Gandhi Nagar, Vasundhara, Vaishali, Indirapuram, Nehru Nagar and other residential areas.
Ghaziabad officials said that the hike in nearly 90% of industrial and rural areas is negligible. The last date for objections in Ghaziabad was July 20.
NCR city Gurgaon, on the other hand, had cut circle rates by 15% across all segments on June 28 “to revive the realty market”.
NP Singh said, “We cannot replicate what the Haryana government has done.”
Home buyers and realtors are not happy with the proposed hike in Noida.
“It will put financial burden on us. Many group housing projects are delayed due to the fault of builders. If circle rates are hiked, buyers will have to cough up more for property registry. We hope administration will not increase rates for group housing,” said Amit Gupta, a home buyer.
“Realty is witnessing liquidity crisis because property sales have dropped. A circle rate hike will further discourage buyers. It should be avoided,” said Anil Mithas CMD of Unnati Group, a realty firm.”