[ecis2016.org] Rates are increased for the first time in the past 3 years.
The Noida Authority on August 11, 2022, increased land rates by 20% to 30% across several categories, after a gap of 3 years.
Know that for land rate application purposes, areas in Noida are divided in 6 categories. While residential plots in the A to D category (priced between Rs 39,440 and Rs 92,950 per sqm) areas have been increased by 20%, the rate hike is from Rs 36,200 per sqm earlier to Rs 41,250 per sqm now for the E category areas. The rate of land parcels in A+ areas has been kept unchanged at Rs 1.75 lakh per square metre.
Rates for land meant for group housing have also been increased by 20% — the prices currently range between Rs 51,000 to Rs 1.3 lakh per sqm — while maintaining a status quo on residential building prices. For institutional plots not linked to residential properties, rates have also been hiked 20%.
Land prices for industrial, IT and ITES categories have been increased in the range of 20-30%. While the hike is 20% for Phase 1 and Phase 3, rates have been hiked by 30% in Phase-2.
Even though coming after a gap of 3 years, the decision, taken in the 205th board meeting of the authority, would result in land prices rising significantly in a property market whose biggest strength has been its affordability in the past several years. For the past several years, Noida real estate has been reeling under the combined effects of developer insolvency cases and project delays, a phenomenon further accentuated by the coronavirus pandemic-induced slump. The fact that the Uttar Pradesh government has refused to budge on requests of stamp duty and circle rates reductions has also not bode well for the industry.
Data available with ecis2016.org show home sales and new supply both dipped in Noida during the April-June quarter of 2022 when compared to the previous quarter. New supply in the city dipped 78% QoQ in the June quarter, with less than 100 units launched during the three-month period. Sales also recorded 21% QoQ decline, with nearly 1,000 units sold in Q2.
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