Noida circle rates to remain unchanged, relief to homebuyers on fee for common facilities
Rates of common facilities in Noida’s group housing societies and of different floors of commercial premises will come down following the decision to keep the circle rates unchanged in the district.noida Updated: Jul 12, 2018 15:35 IST
The Gautam Budh Nagar district administration has proposed to keep the circle rates unchanged in the district for homebuyers as well as for commercial and institutional buyers.
However, waiver in charges on common facilities in group housing societies and the rateable value of different floors of commercial premises will give relief to applicants while executing registries of their properties.
The new circle rates will come into effect from August 1.
Common facility charges
The administration used to charge 15% extra for flats having common facilities such as lifts, gymnasium, swimming pool, power backup and community centre or club from buyers in group housing societies.
On Wednesday, district magistrate BN Singh informed that the administration has decided to reduce this to 6%.
Terming facilities such as lifts and power backup ‘a necessity’, the administration these from the list of facilities in group housing societies. The charges of the other three common facilities such as swimming pool, community centre/club and gym have been reduced from 3% to 2%.
Rateable value slashed
The administration has also given relief by reducing the rateable value for calculating the stamp duty by up to 15% for commercial properties and up to 20% for non-commercial properties.
“We have decided to keep the circle rates same as we don’t want to cause any financial loss to farmers — the reduction will affect their compensation. We have tried to give some relief in the common facilities of group housing societies. Our aim is to increase the revenue by boosting the real estate market, which is going through a slump,” Singh said.
“We conducted a detailed research of the market and realised that the circle rates can’t be reduced, but the stamp duty and other charges can be slashed to give benefit to the buyer,” the DM said.
In the commercial sector, the rateable value of the ground floor has been reduced by 15%; while that of the first floor, upper ground floor, second floor and third floor has remained the same.
Rateable value of the lower ground floor, mezzanine and basement has been reduced by 13.33%. There is no change for properties on floors above the third.
In the non-commercial sector (IT, ITES, institutional, offices and others), rateable value on the ground floor will go down by 20%, lower ground, upper ground, mezzanine, basement and first floor will be reduced by 16.66%, second floor by 10% and third floor by 11.11%. Rateable value for floors above the third will remain the same.
The administration has sought objections which will be entertained over the next 10 days. The final circle rates will be announced on August 1. “People can object to the proposed changes. We will announce the final circle rates on August 1. We have tried to come up with a solution which can increase the number of transactions in the real estate sector,” Keshav Kumar, additional district magistrate, said.
The administration said its research has found that the trend of taking commercial properties on rent in the district has gone up, leading to fewer deals in the market.
“We get 5% of the stamp duty on the sale of a property. When a property goes on rent, then we get just 2% of the total yearly rent. Most properties taken on rent are on the ground floor, lower ground floor and the basement,” Kumar said.
First Published: Jul 12, 2018 15:34 IST