New circle rates have been proposed to bridge the gap between the real estate prices and existing sector rates, and they are pretty steep
After the national capital city Delhi, it is now the turn of Ghaziabad and twin city Noida-Greater Noida to see an increase in the rates of land for residential realty. New circle rates have been proposed to bridge the gap between the real estate prices and existing sector rates. The subregistrar offices have already submitted their proposals. New rates are likely to be effected from mid-July.
K P Yadav, deputy commissioner (stamp), says that after receiving the objections, district administration will revise the new circle rates. According to the proposed circle rates, near NH-24, rates have been hiked from Rs 80 lakh per acre to Rs 1 crore per acre in village Mehrauli. The new rates have been hiked on the basis of distance from the National Highway.
In Morta Duhai village, the new rate is Rs 1 crore to Rs 1.20 crore per acre, up from Rs 50 lakh to Rs 60 lakh per acre. The current circle rate of Bamheta village is Rs 40 to 50 lakh per acre. Now it will be Rs 80 lakh to Rs 1 crore per acre.
In the revenue villages like Dundaheda, Arthla, Sihani, Nahal, Dhukna, Karhaida, Masuri, Dasna, Akbarpur-Behrampur, Mainapur and Sadarpur, the circle rate has been hiked from Rs 20 lakh to Rs 1.30 crore per acre. Basically, these villages are near NH-24 and most of the high-tech townships and development projects are coming up here. Interestingly, more than the residential colonies, there is a likelihood of steep increase in the circle rates for residential land.
In Ramprastha, Surya Nagar, Chandra Nagar, Vaishali, Kaushambi, Indirapuram, Vasundhara, Kavinagar, Rajnagar, Nehru Nagar, Brijvihar, Lohia Nagar, Patel Nagar and Rajendra Nagar, the new circle rates have been hiked from 20% to 58%.
There is a huge demand from residential, industrial and commercial plots to push to revise the circle rates. The existing circle rate of residential plots ranges from Rs 12,000 to Rs 25,000 per sq m. The new rates have been pegged at Rs 15,000 to Rs 32,000 per sq m. For commercial plots, the new circle rate has been hiked from Rs 20,000 per sq m to Rs
80,000 per sq m.
The new circle rate has been revised on the basis of the total number of registration of documentation in last 2-3 years. The new circle rates are dependent on Ghaziabad authority’s property prices.
While for the twin city of Noida-Greater Noida, district administration has already decided the circles rates for the various sectors. According to sources, the existing circle rates will be increased by 10-15%. Deepak Agarwal, district magistrate of Gautam Budh Nagar, said that after the recession, right implementation of new circle rates is important to value the price index and area development. “For the security of a property, one must pay the stamp duty individually; otherwise he would not have any legal right to claim his property.”
Recently, the district administration and authority declared a number of property owners as defaulters. Crore of rupees have to be recovered from these defaulters. Stamp duty makes it easier for both sellers and buyers, who sell their property for making profit and family need. In most cases, the selling price is much higher than the circle rates. In order to save on the stamp duty liability, buyers and sellers agree to register the property at lower than the real selling price.
All things being equal, selling prices could suffer when rates go up. As the stamp duty is chargeable on higher benchmark of the transaction price or the circle rate, one has to pay the duty at least on the circle rates. As the circle rates have increased, the duty liability will also increase. If the price remains at the same level, buyers ask the sellers to pay the increased stamp duty.
The housing market boom doesn’t mean a linear march of prices, whether up or down, as all depends on how well an area is developed. The Yamuna Authority’s residential Sectors 18 and 20, along with Yamuna Expressway are being developed, and these will prove an alternative to Delhi, Noida and Greater Noida. Rakesh Yadav, MD of Antriksh Group, says that the Commonwealth Games bring a lot of hope for fast development.
The authority has also justified the upward revision of circle rates.