The authorities of Noida-Greater Noida, Yamuna Expressway and Ghaziabad have increased circle rates by 40%. The new circles rates have been implemented in all the residential, commercial and industrial sectors of Noida, Greater Noida, Ghaziabad and UPSIDC properties.
M K S Sundaram, the district magistrate of Gautam Budh Nagar, says: “The increase in circle rates is close to 40%, but we have decided not to increase the rates uniformly. There are rural areas, where the population is scattered and thin, and we will keep the increase lower as compared to regions where there are more land transactions, and the prices are escalating. Circle rates of residential, commercial, industrial, group housing, builders’ plots in Noida Extension, Yamuna Expressway and UPSIDC properties have been hiked by 10-30%.”
With this, prices in the residential sector of NRI City in Greater Noida’s Pari Chowk will be costlier. Currently, the going rate here is Rs 23,000 per sq metre, while in the commercial land of sectors like Alpha, Beta, Gamma, Swarn Nagari, NRI City and Golf Link 1, the rate is Rs 83,000 per sq metre.
Officials say that though the circle rates have been increased in both rural and urban areas, the residential sectors will see the maximum increase because of huge transactions being done in residential sectors like Noida Extensions, Noida-Greater Noida Expressway, Crossings Republic, Raj Nagar Extension and Indirapuram’s Shipra Sun City.
The effective new circle rate is higher in developed sectors than developing sectors. For instance, the new circle rate in developed sectors of Noida like Sectors 11, 12, 14, 14 A, 15A, 16A, 27, 39, 49, 52, 93A, 93 is now Rs 3,000-66,500 per sq metre. In developing sectors like Sectors 45, 73, 74, 75, 76, 77, 78, 79, 82, 112, 113, 131, 135, 137, 158, and 162 it is Rs 26,000-Rs 28,500 sq metre. In rural areas like Bahlolpur, Chotpur, Haibatpur, Naya Bans, Chhalera Bangur and Hajipur the new circle rates are in the range of Rs 7,000-15,000 per sq metre.
The Ghaziabad district administration has also hiked the circle rates. According to the new slabs released by the district administration, the new circle rate in a posh area like Kavi Nagar is Rs 36,000 per sq metre, while in areas like Kaushambi, Ramprastha, Vasundhara, Vaishali and Indirapuram the rate is Rs 45,000 per sq metre.
Aparna Upadhayay, the district magistrate of Ghaziabad, says: “The reason we revised the circle rates is that the government is facing a loss in revenue generated through stamp duty. There is a huge gap between the market and government property prices. To fill the gap in revenue generation from properties, we have decided to increase the rates.”
As a result of hike in development charge from Rs 650 to Rs 800 per sq metre and revision of sector rates, Ghaziabad’s property gets costlier by 25-40%.
Parallel to increase in development charge, Ghaziabad district administration has adopted a new policy. Under the new arrangement, new circle rates will be recovered sectorwise. Earlier it was recovered according to area divided into top Hindon and trans-Hindon zones.
The GDA (Ghaziabad Development Authority) has now decided to recover the development charges according to areas divided into different colonies on the basis of Ganga water supply. As of now, in top Hindon areas like Raj Nagar, Kavi Nagar, Nehru Nagar, development charge was recovered at the rate of Rs 1,847 per sq metre. In areas declared as non-Ganga water supply zones, the GDA has hiked the development charge by Rs 653 per sq metre. So, residents of top Hindon zones will now have to pay Rs 2,500 per sq metre as development charge. While in trans-Hindon zones like Vaishali, Kaushambi, Indirapuram, and Vasundhara the development charge has been increased by Rs 652 per sq metre over the current charge of Rs 1,948 per sq metre. In trans-Hindon areas, Ganga water is being supplied.
Rakesh Yadav, the managing director of Antriksh Group, says: “The property market seems set for tough days ahead; as it is, it was reeling under a huge financial crisis due to a fall in the number of buyers. After the increase in circle rates, potential buyers will have to shell out more for the stamp duty.”
Ashwani Prakash, the executive director of Paramount Group of Companies, says: “The new circle rates will directly impact the pricing of real estate; already, the increase in raw materials prices has also adversely affected the pricing.
“However, developers have tried to absorb such price fluctuations in their endeavor to deliver properties in an affordable range. There are no immediate signs of increase in the prices of real estate. The circle rates have been increased and in case the market does not show signs of improvement and the prices of various raw materials do not rationalize, rise in property rates will become inevitable.”
Sanjeev Srivastava, the managing director of Assotech Ltd, says: “The increase in circle rates is universal and takes place across India with many development authorities and municipal corporations revising it annually — this is nothing new. However, unfortunately, authorities are not keen on a reduction in stamp duty, which has been accepted by many progressive states.”
“With increasing real estate prices, the gap between the circle rates and the market price widens and hence increasing the circle rates would be a good measure to minimize the cash transactions in property deals. The drastic increase in the cost of input materials, high rate of home loans and high inflation have also been major factors in taking up the prices of real estate and the government should take measures to rein in these factors, which are not in our hands,” says Deepak Kapoor, the director of Gulshan Homz.
Ashok Gupta, the managing director of Ajnara India Ltd, says: “In the last few years, the circle rates have been increased several times in the NCR region; this has affected the market price to a certain extent. Increasing the circle rates to bridge the gap between market price and the circle rate is a good step which reduces the amount of cash transactions and would help the government in generating more revenue. Better revenue would surely bring in more benefits as the government would be in a better shape to spend on overall infrastructural development.”