In a move that suggests a sharp increase in property prices in Noida, the Noida Authority has decided to raise the land allotment rates for residential plots, group housing, and institutional plots by 6-10%. The decision was made in the latest meeting of the authority, continuing the policy stance from the previous year.
Last year, the Noida Authority had also increased the circle rates by 10-15%. As a result, property buyers looking to purchase property in Noida for constructing homes and industrial setups will now have to increase their budgets.
However, property rates in the A-Plus residential sectors remain unaffected, providing some relief to end-users.
Sanjay Sharma, Director of SKA Group, advised investors to invest in existing and upcoming residential projects in light of the circle rate hike and the growth in the real estate industry. He suggested that with recent developments like the advent of Jewar Airport in the vicinity, buyers might prefer investing in regions and projects in Greater Noida due to its affordability and future growth prospects.
Salil Kumar, Director-Marketing and Business Management, CRC Group, believes that Noida’s property prices will inevitably rise after the circle rate hike announcement, encouraging homebuyers to invest in Greater Noida, which is in close proximity.
Amit Jain, Director, Mahagun Group, expressed concern about the hike in circle rates by the Noida Authority and its impact on property prices. Amit Modi, Director County Group & President Credai (WUP), suggested that the timing of the rate increase could have been better given the high inflation and interest rate hikes.
Meanwhile, the Noida Authority has specified that there will be no increase in the allotment rates of residential flats and commercial properties built and leased by it, respectively. However, residential plots in the E category have seen a maximum rise of 10%, whereas plots in A, B, C, and D categories saw a hike of 6%.
According to Deepak Kapoor, Director, Gulshan Group, the increase in the allotment rates announced by the Noida Authority might cause a snag in property purchasing, more significantly plots. Kapoor suggested that the rapid increase in prices of plots in Noida could push end-users to explore alternative options in other regions.
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