In an order to give a boost to investment in the twin cities of Noida and Greater Noida, District Magistrate B N Singh announced steep rebates in circle rates on July 11, Wednesday. The move will ensure that the cost of registering commercial and institutional properties in Noida and Greater Noida decreases by up to 50%.
This is the first time in six years that the Noida administration has proposed to reduce circle rates, albeit through rebates. The authorities have invited feedback from stakeholders for 10 days, after which it will send its report to the government, ET Realty reported. The revised circle rates will be implemented from August 1.
It is no hidden fact that the real estate market in Noida is in a prolonged slump with flat deliveries running years behind schedule and commercial properties witnessing tepid demand. The slowdown has also affected the government’s revenue as the collections accounted for only around 67% of the expectations.
Noteworthy here is circle rate is the minimum value at which sale or transfer of property takes place. Properties in Noida and Greater Noida are classified into six categories – group housing projects, residential, commercial, industrial, institutional and IT. As of now, no rebates have been announced for the residential and industrial categories.
However, the reduction in circle rates is expected to affect investors of group housing societies as well since registering flats will also see a decrease due to surcharges being reduced on common facilities. Like for group housing, the administration has brought down the surcharge on common facilities by up to 9%, depending on which facilities are on offer.
Presently, the collective surcharge applicable to the given common facilities (power back up, lift, community center, swimming pool, and gym) is 15% (3% for each facility). With the proposed rebates, a maximum of 6% surcharge will be applicable if all five facilities are offered by the developer.