Circle rates have been increased by the government authorities in Noida, leaving out the apartments in this exercise. But does that really effect the property market in Noida?
The order in itself is critically important. At this time, several home owners are awaiting their apartments and many are in process to buy a new one. The real estate market in Noida is witnessing a gradual growth as buyer’s look for housing options there.
Thus the circle rate increase and subsequent exemption to flats and apartments is a going to have a huge impact on the market. Also significant is the government’s decision to scrap the 3% security charge which is levied on buyers.
The circle rate increase of 14% has been restricted just to stand alone residential properties like bungalows and villas. This might shift preference of home owners to luxury apartments which will now be financially attractive due to savings on stamp duties and other charges.
Another point to note is that all other type of properties like agriculture and commercial have been kept out of purview of circle rate revision and applies to Noida, Noida Extension and Noida Expressway regions as well.
The recent circle rate cut in Gurgaon has raised hopes of Noida residents as well but the authorities still went ahead with the rise. Keeping out the apartments in the raise seemed to be a good idea in this case as apartments and flats are the most sought after real estate products in the markets.
The importance of circle rates can be gauged from the fact that it is a benchmark rate at which the property has to be registered. The stamp duty, registration charges and other government taxes on a property are usually calculated on the basis of circle rates. Any increase or decrease in these rates therefore have a direct impact on the property purchase price.
Overall, the circle rate revision which happens each year in August is a good omen for the real estate market with many flat buyers being given a relief. It will also boost property sentiment in Noida, Greater Noida and Noida Expressway regions.