Looking to buy land or property in Noida? Be ready to cough up more money as the Noida authority has hiked land allotment rates across several categories. The hiked rates will apply to new plots and subsequently to all the projects for which land is to be bought.
E category plots have witnessed the highest hike at 10% while it is 6% for categories A, B, C & D. Surprisingly there is no hike in land allotment rate for the A+ category. Just so you know, the Noida authority has categorized residential sectors (and plots therein) into A+, A, B, C, D, and E categories. The categorization is based on the availability of civic amenities in the area and the size of the plot. A+ residential plots and sectors signify the best civic amenities and connectivity while the E category stands for the modest of all.
To be more precise, the new land allotment rates of A, B, C, D, and E category plots now stand at ₹1,11,540, ₹77,750, ₹56,620, ₹47,330 and ₹41,250 per square meters, respectively. In a reprieve for many, the Noida authority has decided to keep the land allotment rate for A+ plots at ₹175,000 per square meter.
Apart from residential, land allotment rates for industrial, institutional, and information technology-related plots have also increased by 6%. To quote you the exact figure, IT and industrial plot rates have risen from ₹23,140 to ₹65,160 per square meter. Group housing plot rates have seen a massive hike from ₹61,550 to ₹1,62,900 per square meter.
Why the rates have been hiked?
The authority cites inflation and the rise in the cost of land as the motivating factor. And 6% is the figure by which the cost of land in the city has surged since it was fixed the last time. Just to let you know, it was August 2022 when these rates were increased the last time by the Noida Authority.
How will it impact us?
Buying a property is going to be costlier in Noida. Chances are these hikes may have a ripple effect on circle rates and stamp fees as we might see them increasing as well. Noida has long been considered an affordable real estate market in comparison to Gurugram making it the go-to choice for middle-class homebuyers and investors. Some believe that with consistent hikes like this, middle-class buyers might be priced out of the property market in Noida.
The rate hike will not impact the following people:
People who have invested, or looking to invest, in existing realty projects, need not worry as rates for built-up houses and commercial properties remain the same.
Other decisions taken by the Noida Authority
In the same meeting, the Noida Authority has also made it mandatory — applicable from April 1 onwards — for builders applying for partial or full occupancy certificates (OC) to submit a structural safety audit report by one of the following 7 designated institutions: IIT Kanpur, Delhi Technical University, Malaviya National Institute of Technology (MNIT)-Allahabad, BITS-Pilani, Aligarh Muslim University, MNIT-Jaipur, and the Central Building Research Institute-Roorkee.
Last November, in an attempt to raise the safety standards of high-rise buildings, the Noida Authority approved a structural safety policy defining the responsibility of both developers and apartment owners’ associations (AOA).
Data Source: Hindustan Times