Relief for homebuyers, Noida Authority keeps circle rates unchanged

To provide a relief to homebuyers and to reduce the ongoing recession in the real estate sector, Noida Authority has proposed to keep the circle rates unchanged in the district. This will help not just homebuyers, but also commercial and institutional buyers. In the process, it has also excluded power backups and lifts from the list of luxury amenities and has reduced the surcharge on facilities like clubs, swimming pools and gyms from 3 per cent to 2 per cent. 

The new norms will come into effect from August 1. 

This means that the home buyers will have to pay less money for registration of the flats. Earlier, power backup and lifts along with club, swimming pools, gyms were counted among luxury facilities in group housing societies. And to avail these facilities, the buyers were supposed to pay a separate surcharge of 3 per cent (.i.e. 15 per cent extra for having common facilities) and a stamp duty of 5 per cent on the total cost. 

"Maximum benefits of the steps will reach to the buyers of ready to move homes or properties that are being resold. But the buyers of new projects, whose registration will be made after a gap of 3-4 years, will not be able to reap the benefits of the decision as it can see a change by that time", says Ankur Dhawan, CFO, Proptiger.com. 

The decision will bring relief to home buyers of Noida and Greater Noida as the real estate sector is facing maximum slowdown in these two areas. Builders believe that the decision will improve sentiments in the market. 

"The decision, which will lower the cost for the buyers, will definitely have a positive impact on the market", says Suresh Garg, Secretary, CREDAI, Western UP. 

Objections related to the proposed changes can be filed by July 21, 2018. The objections will be disposed before implementation on August 1, 2018. 

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However, this move of the government can impact its revenues by as much as Rs 2,522 crore.