Noida: Land rates hike by around 10 percent
After eight months the Noida Authority has yet again revised the plot rates across various categories by 6-10 percent. The decision to hike the land rates was approved at the authority’s recent board meeting. Several decisions were taken, including the hike in land rates, modifications in group housing plot allotment and a hike in the authority’s budget. Read on to know details.
Recently, the residential, group housing, and institutional plot allotment rates were increased by 6-10 percent by the Noida Authority. However, the authority’s flat and commercial property rates did not change. The hike comes the second time in eight months. Earlier in August 2022, the authority revised the rates by 20 percent across A to D category residential plots ranging from Rs 39,440 per sq m to Rs 92,950 sq m. Prior to this, these rates were hiked three years ago in October 2019.
How will the hike in land rates affect the homebuyers?
The property market’s increasing unaffordability is worrying potential buyers. According to a resident of Noida’s sector 118, Noida is losing affordability in the housing market with each rate hike. The recent hike in the allotment rate will further increase the property cost in Noida, affecting the middle class who seek affordable housing facilities. Some property consultants also warn that the rise in allotment rates will result in an increase in the circle rate set by the administration later, as well as additional stamp fees for consumers.
Revision in land rates in Noida in April 2023
The authority decided to revise the rates of E-category residential plots by 10 percent. Plots in Sectors 102, 115, 158, 162 and all other sectors except commercial ones have experienced the hike. Rates for plots in the A, B, C and D category sectors have been increased by six percent, while rates for plots in the A+ category remained unchanged. The new rates of A, B, C, D and E category now stand as Rs 1,11,540 per sq m, Rs 77,750 per sq m, Rs 56,620 per sq m, Rs 47,330 per sq m and Rs 41,250 per sq m, respectively. The allocation rates for group housing, industrial, IT/ITsS and institutional plots were also increased by six percent.
Revision in land rates in August 2022
There was a 20-30 percent increase in allotment rates in August 2022. However, there was no change in rates for two and a half years before that when the pandemic raged.
What were the revised land rates?
Despite the overall increase in the land rates by 20 percent across the division, the residential plots in the A+ category stay the same at Rs 1.75 lakh per sq m. E category plots also saw a hike from Rs 36,200 to Rs 41,250 per sq m. There is also a 20 percent increase in plot rates for group housing projects, ranging between Rs 51,000 per sq m and Rs 1.3 lakh per sq m.
Institutional plots that are not linked to residential properties, the IT and ITES category, and industrial plots in Phases 1 and 3 will have about a 20 percent price hike. The price for Phase 2 has been hiked by 30 percent. However, there has been no increase in the prices of plots in the commercial and residential building categories.
The allottees will also get a rebate of two percent if they paid the lump sum amount within a timeline for residential, industrial, IT/ITeS and institutional categories.
What were the new modifications in plot allotment?
Keeping in mind the interests of the buyers and builders, there are a few modifications in the group housing plot allotment. From now on, the consortium members must have 100 percent shareholding till occupancy. Moreover, after the allotment, the entire premium amount will have to be deposited within 90 days. It is also mandatory for the developer to open an escrow account and give details of the names of the buyers, allotted flat numbers, and the quarterly amount to be deposited in the account. Division or amalgamation of the plots is not allowed after the allotment. Further changes in other categories will be informed after the brochure is finalised.
What were the changes approved in the time extension policy?
The board has also approved modifications in its time extension policy. Earlier, for group housing and residential plots, there was a four percent charge in the first year. It subsequently increased by a percent every year from the second to the sixth year. The rate, then, increased to 10 percent from the seventh to the tenth year. After that, there was a fine of 25 percent.
The Noida Authority will now charge a percent of the allotment rate in the first year, and then two percent to 10 percent between the second and the tenth year.
In the wake of the global pandemic, the allottees with incomplete projects or whose lease deeds expired on March 21 would be given a year’s extension.
