According to an official, after going through the results of surveys in the realty sector, the administration realised that the revenue generated was not impressive, and therefore decided not to hike circle rates.
In a major relief to homebuyers, the Gautam Budh Nagar District Magistrate declared on Saturday that there will no hike in circle rates on properties for the Financial Year 2017-18. The new, hiked rates were to come into effect from August 1. The circle rate is the minimum value at which the second sale or transfer of a property takes place.
According to an official, after going through the results of surveys in the realty sector, the administration realised that the revenue generated was not impressive, and therefore decided not to hike circle rates.
"We have analysed the feedback and have taken a final decision. The administration has decided against hiking the rates in all areas under the Noida Authority, Greater Noida Industrial Development Authority (GNIDA), and Yamuna Expressway Industrial Development Authority (YEIDA)," BN Singh, District Magistrate, Gautam Budh Nagar, said.
The administration considered feedback from nine surveys — Noida, 7, Greater Noida, 1, and Dadri, 1.
Also, many applicants requested the officials to decrease circle rates due to the slowdown in the real estate sector, besides pointing out that circle rates in some areas were higher than the market rate. "There were suggestions to decrease the rates. Keeping everything in mind, we have decided that there would be no change. The decision has been taken for the benefit of the people. The Jewar airport will help us meet the yearly revenue expectations," Singh said.
Welcoming the move, residents and developers said the circle rates of properties in certain sectors were already higher than the market rate, and any increase would have had a negative impact.
"It is expected that in the coming few months, selling and buying of properties will increase. If the circle rates were increased, it would have discouraged those who wanted to invest in property. After demonetization, the real estate business has been going through a rough patch," said Suresh Tiwari, Senior Vice-President of the Federation of Noida Resident Welfare Association.
"In 2016-17, all three authorities did not increase their circle rates because of the recession in the property business," SK Jain, Assistant Inspector General (Stamps), said.
Meanwhile, many are expecting the upcoming Jewar airport in Greater Noida to give the realty sector a boost. Officials said this might help make up for the revenue deficit.
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