Gautam Budh Nagar district administration has proposed to cut down and revise circle rate along with surcharge on housing and commercial properties.
The district administration has proposed circle rate revision in Noida and Gr Noida. A sharp cut of 21% for floor wise commercial property and 21.5% for individual commercial property in Noida is on cards. Apart from this, other proposals include reduction in surcharge of malls of Noida 25% and group housing of Gr Noida 6%. The objective is to boost industrial investment in the region and achieve revenue target.
As per proposal, property registration will be economical for commercial and residential category both. A big boost to commercial category because the district administration failed to bag sound deals of commercial lands in recent years in Noida. Before investor summit, state is keen to make commercial property affordable for investors and buyers.
For common people, it is important to know that Gautam Budh Nagar has 4 zones; Noida, Gr Noida, Dadri and Jewar. Revision of circle rate and surcharge cut of commercial will not be applicable for Gr Noida, Dadri and Jewar but for home buyers, 6% surcharge cut is applicable across the district. New circle rates will be applicable from August 1st and objections can be raised till July 31st.
Circle rate is known as the minimum rate on which sale or transfer of property takes place in district. 6% surcharge of group housing comprises of 2% each of club, swimming pool and gym facility. In 2018, 9% surcharge had been withdrawn and now rest is proposed to drop. Although surcharge in Gr Noida was 6% but now only stamp duty will be extra cost on property registry. (Check Image.)
The district is facing issue of revenue generation for development works hence focusing on reduction to attract people to invest in property transactions. Let’s have a look on property expert on this recent revision of circle rate:
Saurav Paruthi- MD, Param Homes says, “21% cut is huge boost for commercial properties in Noida. Property prices are quite competitive due to limited launch and this move will make commercial property affordable. Buyers and investors will get benefit of reduction in circle rate and prefer to own property rather than searching for rent. Adding Gr Noida could have brought better prospects for revenue. Housing properties are also expecting cut in surcharge of 6% and it is beneficial for buyers due to supply of ready to move in across the district. Overall it will help investors to register properties and save money.”
Dinesh Jain- MD, Exotica Housing says, “Club, swimming pool, power back and gym are the most common essential amenities but not luxury for a housing society and reduction in surcharge is a good step. After cut of 6%, only stamp duty will be applicable i.e 5% so registry charges of property will come down without any change in circle rate. It is good for property market in coming months and ready to move in units will get more buyers in Noida -Gr Noida. This can fuel supply of ready to move in market too. Major benefit will go to commercial property buyers because surcharge and circle rate reduced 25% and 21.5%.”
Hari Om Dixit – Director, Gayatri Group says, “I am happy to see that govt is making property transactions more pocket friendly. Housing sector will be surcharge free on common facilities after reducing 6% this year and end users will get benefit of this. Now home buyers will be liable to pay only stamp duty, 5% of property cost, during registry. I strongly feel that ready to move in units will take a hit. Developers will move to finish existing phase and projects to avail benefit. But benefit of commercial property should be applicable for Gr Noida too.”
IRW Views– Circle rate revision is good for property market. Removing surcharge from group housing is sensible step towards making properties affordable for home buyers. But it will not make big difference because circle rate is unchanged. For commercial category, Noida is beneficiary and there is no logic behind leaving Gr Noida where prospects are brighter.