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Increase of approximately ten percent in land prices in Noida?

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Increase of approximately ten percent in land prices in Noida?

  • 30 Jul 2023

The Noida Authority has once again increased plot rates by 6–10% across all categories after eight months. At a recent board meeting for the authority, it was decided to raise the land charges. A number of decisions were made, including an increase in land rates, changes to the allocation of group housing plots, and an increase in the authority's budget. To learn more, keep reading.

The Noida Authority recently raised the prices for residential, group housing, and institutional plot allocation by 6–10%. The authority's flat and business property rates, however, remained the same. It is the second increase in eight months. The authority raised the prices earlier in August 2022 by 20% for residential plots in the A to D category, with prices ranging from Rs 39,440 per sq m to Rs 92,950 sq m. Prior to this, in October 2019, these rates were increased.

How will the hike in land rates affect homebuyers?

Prospective purchasers are concerned about the housing market's rising affordability issues. Noida's sector 118 inhabitant claims that with each increase in house prices, the area becomes less affordable. The middle class, who seek inexpensive home options, will be impacted by the recent increase in the allotment rate since it will drive up the cost of real estate in Noida. The increase in allotment rates, according to some real estate advisers, may lead to higher circle rates eventually determined by the administration as well as higher consumer stamp costs.

Revision in land rates in Noida in April 2023

The rate for residential plots in the E-category will increase by 10%, the authority has decided. Plots in all sectors other than commercial ones, including Sectors 102, 115, 158, and 162, have seen an increase. Plot prices in the A, B, C, and D category sectors have climbed by 6%, while prices in the A+ category have remained the same. The new charges for categories A, B, C, D, and E are currently Rs. 1,11,540 per square meter, Rs. 77,750 per square meter, Rs. 56,620 per square meter, Rs. 47,330 per square meter, and Rs. 41,250 per square meter, respectively. The allocation rates for industrial, IT/ITsS, institutional, and group housing plots were also raised by 6%.

Revision in land rates in August 2022

There was a 20-30 percent increase in allotment rates in August 2022. However, there was no change in rates for two and a half years before that when the pandemic raged.

What were the revised land rates?

Residential plots in the A+ category continue to cost Rs 1.75 lakh per square meter despite a division-wide hike in land charges of 20%. Also increased from Rs 36,200 to Rs 41,250 per sq m were E category plots. Additionally, land prices for group housing developments have increased by 20% and now range from Rs 51,000 per sq m to Rs 1.3 lakh per sq m.

There will be a price increase of around 20% for institutional sites not connected to residential buildings, the IT and ITES category, and industrial plots in Phases 1 and 3. The cost of Phase 2 has increased by 30%. The cost of plots for both commercial and residential construction, however, has not gone up.

If the lump sum payment was made within the specified time frame for the residential, industrial, IT/ITeS, and institutional categories, the allottees would also receive a rebate of 2%.

What were the new modifications in plot allotment?

Keeping in mind the interests of the buyers and builders, there are a few modifications in the group housing plot allotment. From now on, the consortium members must have 100 percent shareholding till occupancy. Moreover, after the allotment, the entire premium amount will have to be deposited within 90 days. It is also mandatory for the developer to open an escrow account and give details of the names of the buyers, allotted flat numbers, and the quarterly amount to be deposited in the account. Division or amalgamation of the plots is not allowed after the allotment. Further changes in other categories will be informed after the brochure is finalised.

 

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