How Higher Circle Rates Will Affect Home Buyers In Noida

From August 7 onwards, the circle rates in Noida have been raised by 5-10 per cent. Though the hike is not uniform across different categories of properties, the registration of all will become more expensive. What impact would this have on the real estate and home buyers in Noida?

• After the Uttar Pradesh government had declared the Okhla Bird Sanctuary as an ecologically sensitive zone, the cost of registering property around it had risen. The home buyers have urged the UP government to not raise the circle rates. But now with the hike, real estate in Noida will become even more expensive.
• Many home buyers in Noida found it difficult to move into ready-to-move in flats even before the circle rate hike because registration was expensive. They have been arguing that they should not be expected to pay for Centre's mistakes. Home buyers in Noida had raised this issue before the Centre. Home buyers within 10 km from the Okhla Bird Sanctuary were expected to pay far more, according to the earlier circle rates.
• For Category A property, circle rate would now be Rs 90, 500 per sq mt, instead of the earlier rate of Rs 86,000 per sq mt. So, the rate of registration of property in Sector 15 and Sector 44 in Noida will rise.
• The circle rate of agricultural property in Noida will rise by 10 per cent, on average.
• According to the officials in Noida, the greatest rise in registration rates would be for the residential units in Jaypee Greens and the property in the Alpha commercial property.
• High-rise buildings will have their rates eased by 2 per cent from fifth floor onwards, though there is a cap of 20 per cent in the total reduction in rates. Earlier, the circle rates were reduced by 5 per cent for high rise buildings from third floor onwards.
• The cost of stamp duty will further rise in Noida, as this duty is correlated with circle rates. Home buyers in Noida have been saying that the circle rates are higher than market rates, and that buying property at this rate is not feasible. So, many home buyers have been hesitant to buy property in Noida, lowering the revenue targets of the stamp and registration department. The decline in the stamp and registration department's targets were seen the most in the residential and commercial properties.