With the commercial real estate market going through a slump, the district administration on August 7 approved a reduction in circle rates in Gautam Budh Nagar, with effect from August 8. The reduction is 21% for floor-wise commercial property and 21.5% for individual commercial property.
This is for the first time that the district administration has reduced circle rates — the minimum value at which sale or transfer of property takes place — in some categories in Gautam Budh Nagar since the UP Stamp (Valuation and Property) Rules came into effect in 1997. The administration has also waived the 25% surcharge for malls and 6% surcharge for group housing societies — 2% each for the club, swimming pool, and gym — across the district.
“We had earlier proposed the reduction in circle rates, seeing stagnation in the sale of larger commercial properties in the district. Since the proposal did not meet with any objection, we have cut down the rates to keep them more realistic,” District Magistrate BN Singh told TOI.
As circle rates for commercial property in Noida has been the highest in Noida’s sectors 18 and 38A, the rates in these areas have now been reduced from Rs 4.5 lakh to Rs 3.55 lakh per sq m for shops, from Rs 3.52 lakh to Rs 2.78 lakh for offices and Rs 3.45 lakh to Rs 2.72 lakh for warehouses. Commercial property rates are the lowest in areas such as sectors 63A, 69, 95, 103, 106, 109, 11, 123, 138, 145, 150 and Noida Export Processing Zone (NEPZ).
Officials hoped the reduced circle rates will be a relief for investors and homebuyers in Noida as it is also going to bring down registry charges and stamp duty. “We realized that the surcharge for escalator and AC was levied only in Noida malls, and not in Greater Noida or any other neighboring city. We were seeing an increasing trend towards renting mall space, rather than buying it,” said S K Tripathi, Additional Inspector General of the stamps and registration department.
No changes have, however, been made in residential, commercial, institutional, industrial and IT/ITeS categories in Dadri, Jewar and Greater Noida. “With the new international airport coming up in Jewar, it is the most promising area in terms of revenue. In the coming year, we are hopeful that more people will invest in Jewar, especially in commercial property. So, there is no apparent need to reduce rates in that area,” Singh said.
Source: Economic Times, Delhi/NCR