Circle rates revised
The Times Of India
Demand for residential,industrial and commercial plots plays a big role in pushing the revision of circle rates.This is in evidence in Ghaziabad,Noida and Greater Noida where circle rates have been revised upwards by 15-20 %.A K Tiwary writes
Now,buyers in Ghaziabad,Noida and Greater Noida will have to pay more for registry of property as new circle rates,with 15-20 % hike,have kicked in from August 1,2010.The district magistrate has already approved the proposed new circle rates.The circle rates for residential land in Ramprastha,Surya Nagar,Chandra Nagar,Vaishali,Kaushambi,Indirapuram,Vasundhara,Kavinagar,Raj Nagar,Nehru Nagar,Brijvihar,Lohia Nagar,Patel Nagar and Rajendra Nagar have all been hiked by 10-20 %.
Obviously,the demand for residential,industrial and commercial plots plays a big role in pushing the revision of the circle rates.It may be recalled that in the absence of an increase in re-sale of properties in the NCR of Delhi during the bearish phase of the real estate,the funds inflow coming through sub-registrars to many local courts came down substantially in 2008 and 2009.Delay in completion of builder projects also led to fewer registries in Gurgaon,Ghaziabad,Noida and Greater Noida areas.
Till date,there are more than 9,000 properties which have not been registered in Greater Noida.These include 3,760 (agricultural sector),2,806 (individual houses),1,250 (group housing),224 (industrial),66 (institutional) and 450 (builders) categories.Eearlier,circle rates in Noida ranged from Rs 18,000 per square yard to Rs 40,000 per square yard.In Greater Noida,circle rates varied from Rs 14,000 per square yard to Rs 17,000 per square yard.From August 1,the minimum circle rate in Noida is Rs 20,000 per square yard while the maximum is Rs 46,000 per square yard.
K P Yadav,deputy commissioner of stamp,says: "After receiving the objections,the district administration has revised the circle rates.According to the new rates,the circle rate of properties near NH 24 has been hiked from Rs 80 lakh per acre to Rs 1 crore per acre in Mehrauli village.The new rates have been worked out on basis of distance of a property from the national highway.In Morta Duhai village,the new rate is Rs 1 crore to Rs 1.20 crore per acre,up from Rs 50 lakh to Rs 60 lakh per acre.Earlier,circle rates of Bamheta village were Rs 40 lakh to Rs 50 lakh per acre.Now they have been revised to Rs 80 lakh to Rs 1 crore per acre.
Villages like Dundaheda,Arthla,Sihani,Nahal,Dhukna,Karhaida,Masuri,Dasna,Akbarpur-Behrampur,Mainapur and Sadarpur saw the circle rate has been hiked several fold.Basically,these villages are near NH 24 and most of the high-tech townships and development projects are coming up here;undoubtedly,land becomes costlier.Interestingly,more than in residential colonies,there is a likelihood of a steep increase in the circle rates of residential land.In Ramprastha,Surya Nagar,Chandra Nagar,Vaishali,Kaushambi,Indirapuram,Vasundhara,Kavonagar,Rajnagar,Nehru Nagar,Brijvihar,Lohia Nagar,Patel Nagar and Rajendra Nagar the circle rates have been hiked between 20% and 58%.A huge demand for residential,industrial and commercial plots has triggered the revision of circle rates.The existing circle rates for residential plots range between Rs 12,000 and Rs 25,000 per sq m.Now,the new rates are Rs 15,000 to Rs 32,000 per sq m.For commercial plots,the new circle rate has been hiked from Rs 20,000 sq m to Rs 80,000 per sq m.
The district administration of Noida-Greater Noida has also revised the circles rates for different sectors of the twin cities with existing circle rates having been increased by 10-15 %.Deepak Agarwal,district magistrate of Gautam Budh Nagar,says: "After the recession,correct implementation of new circle rates is more important to value the price index and area development.To have their property secure,one must pay the stamp duty;otherwise they don't have any legal right to claim the property,"he says.
Recently,the district administration and GDA had declared a number of defaulters holding residential,commercial,institutional and industrial property with crores of rupees having to be recovered from these defaulters.Stamp duty makes it easier for both sellers and buyers - those who sell their property for profit and those who buy for residential purpose.
All things being equal,selling prices could suffer when stamp duty rates go up,because rising rates go hand in hand with stamp recovery.As the stamp duty liability goes up,the total cost for buyers also increases.So,they ask sellers to share the burden of stamp duty,which may result in lower realization for the sellers.
A housing market boom is not merely a matter of prices going up or do down;it also depends on how an area has been developed.Areas on both Noida-Greater Noida Expressway and Yamuna Expressway are emerging as popular destinations for middle class urbanities.
These provide an alternative destination to Delhi,Noida and Greater Noida.Rakesh Yadav,managing director of Antriksh Group,says,"Commonwealth Games have given a fillip to the development of these areas."