NAREDCO opposes raise in land rates in Noida by 14.19%

New Delhi, June 17, 2016: National Real Estate Developers Council (NAREDCO) today regretted the proposal of the Noida authority to increase land allotment rates by 14.19% for builders and developers.

This raise comes at a time when the real estate industry is in crisis due to slow demand of flats in the market, said NAREDCO President, Parveen Jain, adding this area is important for the industry in the NCR region.

The proposal to increase the land prices has been sent to the Akhilesh Yadav Government for approval.

On the other hand Haryana Government and other states are considering reducing the land rates to help the industry to come of the red. West Bengal had already reduced the land prices, Mr Jain said.

Mr Jain demanded the Akhilesh Yadav government not to accept the proposal of the Noida, authority and rather should consider reducing the land rates in the interest of the industry and the home buyers. Uttar Pradesh is going to polls the next year. 

Some developers and builders facing crisis are not able to develop the surplus land due to paucity of funds and want to surrender the land so that they can complete the projects at hand. These authorities are willing to take back the land at the old rate from builders who want to exit and plant to resell it at the current market prices.

“This is unfair. They should be given some premium on the land if the land prices are going to be increased,” Mr Jain said.

Corporate Comm India(CCI Newswire)