Property prices to increase as Noida hikes land allotment rates

Property consultant said with the hike in the allotment rate by the authority the consumer will have to cough up more money

The Noida authority approved an increase in the land allotment rates in few categories during a board meeting on Sunday, officials said.

The updated rates will affect property costs throughout the city. (Photo for representation)

According to the officials, the updated rates will affect property costs throughout the city.

The Noida authority has divided plotted residential sectors into A plus, A, B, C, D, and E categories based on plot size and available civic amenities. The authority decided to keep the land allotment rate at ₹175,000 in category A plus and increased the rate by up to 10% in category E. All other categories saw a 6% increase in land allotment rates.

The new rates of A, B, C, D and E category now stand as ₹1,11,540, ₹77,750, ₹56,620, ₹47,330 and ₹41,250 per square metres, respectively.

Noida authority CEO, Ritu Maheshwari said, “We have increased the allotment rates for few category of the land because we have in past realized that the property cost has gone up and also the consumer price index for urban areas has witnessed a hike of 6 %. Therefore the board has approved the hike from 6 to 10%.”

However, some property consultants warn the rise in allotment rates would translate to a hike in the circle rate that the administration sets later, along with additional fees in stamp fees for consumers. “With the hike in the allotment rate by the authority the consumer will have to cough up more money if he wants to buy the property in Noida in the future,” said Chandan Singh, a property consultant.

Prospective buyers are also worried about the property market’s increasingly unaffordable prices due to rate hikes. Residents of Noida’s sector 118, like Ajay Kumar, fear that with each rate hike, Noida is losing affordability in its housing markets. “This hike in the allotment rate will further increase the property cost in Noida impacting the middle-class who look for affordable housing facilities,” he said.