Developers to hike new flat prices by up to 25% in Noida Ext | india | Hindustan Times
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Developers to hike new flat prices by up to 25% in Noida Ext

india Updated: Dec 04, 2011 12:23 IST

New flat buyers at Noida Extension will have to pay 25% more as developers have decided to pass on to consumers the burden of the Rs 3,000 crore payment notices that the Uttar Pradesh government had issued to land allottees.

"We do not have any option but to pass on the burden to customers. The existing buyers will have no impact, but we will increase the prices for future buyers by 15-20%," Confederation of Real Estate Developers' Association of India (CREDAI) NCR Vice-President Anil Sharma said.

He said Greater Noida Industrial Development Authority (GNIDA) has sent demand notices to pay an additional amount of Rs 2,015 per sq metre.

Commenting of the impact of the development, Supertech Chairman and Managing Director R K Arora said: "We are planning to increase the rates of our unsold flats in the area by 20-25%. We are collecting the money now for the additional payment to the authority."

Arora, who is also the CREDAI NCR Vice President, said the authority has sent notices to all land allottees such as developers, industry owners and individuals.

"The authority has sent notices for collecting a total of about Rs 3,500 crore. The rate for claiming money against the lands are different for all segments such as residential one, industry and individual allottees," he added.

As far as Supertech is concerned, Arora said the company has already deposited Rs 25 crore before the expiry of the first deadline.

Sharma, who is also the Chairman of Amrapali Group, said the developer has received notice for an additional payment of around Rs 110 crore and it has deposited 25% of it.

The authority asked the owners to pay their respective amounts in different phases, the first of which expired on November 30. Some developers have paid the first installment of 25%, he added.

The realtors are, however, hoping that the authority would consider reducing the burden.

"We have requested them to waive the interest and also be little more lenient on payment. We are hopeful of some solutions," Sharma said.

The Allahabad High Court had last month quashed the land acquisition in three villages in Gautam Buddh Nagar district -- Asdullapur, Yusufpur Chak Shaberi and Devla. The developers had claimed there would be no impact on builders as well as flat buyers as no projects were launched in these locations.