Hike in Noida’s Circle Rates Disappoints Investors

Two months after the NOIDA Authority raised the circle rates by 60 to
80%, another hike of 45% has been made, putting the real
estate noida market in a tizzy. Plans are afoot to raise the circle rates of rural
areas too, inviting the displeasure of the locals.

The new circle rates cover the entire city, including those tracts that
fall under the village panchayats and were not covered by sector rates.
This move has been taken to check buyers who purchased plots on village
land close to the sectors which cost far less.

Both the commercial and residential property rates in Noida have been
affectd. Prime commercial sectors of Noida like 18 and 38A have been
raised by Rs.65,000, and would cost Rs.1,65,000 per sq. meter. Prime residential
sectors in Noida like 14A, 15A, 17 and 44 face a hike of Rs.12, 000,
touching Rs.40,000 per sq. meter.

For the real estate market
in Noida, the fresh hike is a major setback,
as transactions had already been affected by the last increase two months
ago.

The Greater Noida Development Authority has announced the norms for
the new housing policy which demands Rs.1,100 for the application form,
between Rs.2 to Rs.5 lakh for registration, and the total payment in
three monthly instalments.

The middle-class would be most affected by the new norms which elicit
a sizeable amount for making applications and getting loans to cover
the registration expenses