The Gautam Buddh Nagar administration has proposed slashing the circle rate of commercial plots in Noida by 21.5% and waiving the 6% surcharge on housing projects in the district. A draft notification recommending the reduction in circle rates and other charges, to provide relief to property buyers, was issued on July 24, 2019, said district magistrate Brajesh Narain Singh. The move, which will affect registry rates on housing properties across Noida, Greater Noida, Dadri and Jewar, will mobilise home buyers who were waiting to invest ever since the demonetisation in 2016, builders said.
“It is a good move. Although the circle rate of the district is still unchanged, it is the first time in recent years when Gautam Budh Nagar reduced the surcharge on common facilities of group housing, which will bring down the burden of property registry on home buyers,” said Prashant Tiwari, chairperson of Prateek Group and president of CREDAI Western Uttar Pradesh.
He said, at the time of registering a property, the district charges a surcharge in the name of luxury facilities or amenities provided in housing societies. Now, after the consideration of views and suggestions, in a first-of-its-kind move, power backup and lifts have been removed from luxury facilities and considered as common and essential parts of societies, he added. “This will mobilise those home buyers who were in a ‘wait and watch’ mode, after the demonetisation in 2016,” Tiwari said.
Ashish Bhutani, CEO of the Bhutani Group, said the move will also be beneficial for commercial properties, as it has been proposed to reduce the surcharge of 25% on malls equipped with centralised air-conditioners and escalators. “It will help buyers to secure their investment, the builder will get the money to pay the authority and revenue will increase,” he said. Sagar Saxena, project head for Spectrum Metro, said he is hoping that the slashing of the circle rates will increase further and ‘revenue realisation’ will go up. Dhiraj Jain, director of Mahagun Group, said the proposal by the administration will benefit the new home buyers too, thus, increasing the sale and purchase of properties.