New Delhi, July 15, 2018: On Wednesday, the big announcement was made by District Magistrate B N Singh about the sheer rebates in circle rates across categories. The twin cities of NCR- Noida and Greater Noida witnessed the fluctuations in surcharge rates.
The amendments in this residential area are bringing to the table interest of the homebuyers. Mr Ashok Gupta, CMD, Ajnara India Ltd, said ,” Keeping the circle rates unchanged in Noida and Greater Noida is a great decision by the authority. This will attract the home buyers and help us to clear up the inventories. Earlier surcharges on common facilities such as gymnasium, lift, power backup, swimming pool and community center was 15%, from which surcharges on lift and power back is removed and reduced on other three services from 3% to 2%. This will directly reduce the final cost of property.”
In commercial category, the rebates have been proposed within the range of 15% to 45% excluding the power backup and lifts from circle rate calculation since they are integral parts of a high-rise society. It would certainly accelerate the commercial sector and also give boom to the investment. It would encourage the investors and become more hassle free which is a favorable action towards commercialization. Mr. Dhruv Agrawala – Group CEO, Housing.com, Makaan.com and Proptiger.com, said, ”In commercial properties, ground, basement and mezzanine floors always been high in demand and costlier too. The administration has provided relief by reducing the rateable value of stamp duty ground floor from 20% to 15% rather than reducing the circle rates. Also, rateable value of the lower ground floor, mezzanine and basement has been reduced by 13.33%. There is no change for properties on floors above third. This will help in boosting the demand of commercial real estate in the region.”
The steep rebate in surcharge was announced for the first time in six years by the administration. After reduction in the surcharges on common facilities it is a relief for investors of group housing societies as registering flats will also see a downfall. This move does not affect farmers and change was not applicable in Dadri and Jewar areas. To elaborate- Deepak Kapoor, Director Gulshan Homz & President, CREDAI Western U.P said, “Administration has decided not to reduce the circle charges as they do not want farmers to face losses in the compensation. Hence, administration played smartly and reduced surcharges on common facilities from 15% to 6%. This will reduce the purchase cost for the home buyers in group housing project. ”
The proposal is quite relaxing and also welcomed by the developer’s fraternity. The revival of circle rates was necessary as per the situation of prevailing market and its implementation would gradually bring the positive impact to the entire sector. Adding to this, Mr. Dheeraj Jain, Director, Mahagun Group, quotes, “The steep rebates in the circle rates will glad the home buyers and investors. The decision was evidently made to boost the investment and to create the balance in the market. The investors and buyers of twin cities will aspire for more benefit because of reduced surcharges on common facilities. Therefore, to attract the more registries and revenue the reduction in surcharges is justified.”
The demand and supply mechanism of the economy tends to bring the changes either directly or indirectly. When the demand and supply gets unbalanced some actions has to be made to establish the pace between the two. The unsold inventory is a threat to the real estate sector so to evolve the contemporary market situation and accelerate the demand in the sector the changes are required. Mr.Rajesh Goyal , MD, RG Group said, “The administration announced rebate in the circle rates in twin cities -Noida and Greater Noida which is quite an out of the blue decision. The rebate has been given to boost the investment and to generate more pace in realty sector. These actions will consequence in tepid demand as now it is more accessible for common man to buy property resulted in a big sigh of relief for the buyers.”
Now, buying property in Noida and Greater Noida will become cheaper. The cut in circle rate in various categories of properties was triggered to generate the demand and provide some momentum. The revised circle rates will be applicable from August 1. In context to this- Mr. Manoj Gaur, Vice President, CREDAI National & MD, Gaurs Group quotes, “We were expecting a smart move from the administration this time and they did the same. Without touching the circle rates, the administration has given relaxation on common facilities in group housing projects and a reduction in rateable value in commercial properties. The decision will lead to decrease in final cost of the property to the customers and investors. This support from authority will definitely boost the positive sentiments in real estate market.”
Corporate Comm India(CCI Newswire)