Noida raises land rates by a steep 18%

Delhi/NCR
Land allotment rates in Noida were increased by a steep 18.4% on February 4, the biggest hike in recent times that coincides with the state paying additional compensation to farmers from whom it acquired plots.

The decision was taken at a joint board meeting of the Noida, Greater Noida and Yamuna expressway development authorities. In Noida, the 18.4% increase is applicable to all categories of land, including group housing, residential and institutional properties, but not those allotted for commercial purposes. Rates were hiked in Greater Noida, too, the raise ranging from 4-49% depending on category of land.

The revised rates are applicable in Noida with immediate effect. In Greater Noida, they come into force from April 1. The Yamuna Expressway Industrial Development Authority (YEIDA) has decided not to revise existing rates.

Commercial land allotment rates in Noida have not been changed because demand has slowed down, officials said, and higher prices would further discourage investment.

In Greater Noida, allotment rates for institutional properties with an area of 4,000 sq m or less have been increased by 29%. For industrial properties with a size of 4,000 sq m or less, rates have been increased by 10%. Land for commercial properties will be expensive by about 4%. The hike is steeper in the group housing segment, which has seen an over 23% hike. For recreational greens, the increase is nearly 49%.

The rates were last hiked in Noida in June 2014 (7-10.5%) and in Greater Noida (10%) last February. "The increase in prices is a routine affair carried out each year," said Rama Raman, chairman of the thre authorities. "The hike in allotment rates is also crucial considering the increase in land costs, inflation rates, farmers' land compensation, etc," he added.

For Noida, the hike in allotment rates means residential properties have become dearer by at least Rs 12,650 per sqm in category 'A' sectors like 14,14A, 15, 15A, 17A and 44 and by Rs 4,600 per sq m in category 'E' sectors like 102,115 and 158. Group housing flats in Noida have become costlier by almost Rs 17,250 per sqm in category 'A' areas and by 6,517 per sqm in category 'E'. In the institutional segment, for IT/ITeS properties in sectors 1, 16A and 24 buyers in Noida will have to shell out Rs 44,400 per sqm now. For plots in the Phase I, II and III industrial areas, the allotment rates for plots up to 4,000 sqm have been fixed at Rs 26,805, Rs 9,543 and Rs 9,886 per sqm, respectively.

Raman said residential plots in the Greater Noida area will be dearer by almost Rs 780 per sqm while for commercial plots, an extra Rs 1,945 will be charged.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/noida-raises-land-rates-by-a-steep-18/80296.html