Now, circle rates set to rise in Noida

Delhi/NCR
Buying property in Noida and Greater Noida is likely to become costlier, after UP stamp and registry department increases circle rates by an expected 17-20%. With allotment rates already raised, circle rates are expected to follow, said UP stamp and registration department officials.

The assistant inspector general (AIG) of the department, S K Singh, added the department will seek a 17-20% hike, though he added it is yet to ascertain if the hike will happen in the coming week or from the new financial year, starting April 1.

"Circle rates are connected to Authority allotment rates. On Wednesday, Noida Authority passed hiked allotment rates. Through media reports, we've come know the hikes were to take effect immediately, though we're yet to receive any communication from the Authority. Based on the communique, circle rates will be raised within a week or from April 1," said Singh, adding this mid-term hike will not affect the scheduled revision of circle rates that takes place in August every year.

"Gautam Budh Nagar DM has been transferred to Aligarh. We will discuss the matter with the new DM. We hope to receive the document on raised allotment rates from Noida Authority in a couple of days," he said.

In August 2014, residential circle rates were raised by 10-17%. While commercial circle rates were raised by 2% (except in sectors 18 and 38A, which saw a 17% hike), institutional circle rates rose by 10%. There are five types of residential sectors in Noida. From August 1, plot rates for these will range between Rs 35,000 and Rs 86,000 per sq m.

There was mixed reaction from real estate players though. "The move is welcome. We're happy as flat rates have not been hiked, and service-based charges have been scrapped," said Amit Gupta, Assocham member and MD of Orris.

Others differed. "We should have continued charging apartment circle rates based on services provided,Moreover, commercial rates are unrealistic and higher than market rates. Hikes in both allotment and circle rates mean property across GB Nagar will cost more, but this is good for the region's development," said S S Bhasin of Bhasin group.

Source:http://content.magicbricks.com/industry-news/delhi-ncr-real-estate-news/now-circle-rates-set-to-rise-in-noida/80333.html