The initiative of Pradhan Mantri Awas Yojana (PMAY) by the Central Government of India which highlights the affordable housing segment and aims to provide houses for all by March 2022 has resulted positively, yet not able to fill-up certain loopholes. The real estate sector of India at present is struggling with the slowdown process in property sales.
Considering the real estate market of Delhi NCR, the region has abundant reputed builders from the real estate sector who are known to deliver the best quality projects with delivery on time. The homebuyers rely heavily on the credibility of these builders. However, several residential projects in Noida are in the pending stage.
The hope of possessing the booked homes by the homebuyers on time is little to no. The residential property in Noida undertaken by the builder that is suffering also belongs to the luxury segment with the best construction quality and most importantly promised on-time delivery.
An initiative to boost sales by the U.P. Government
The fall in property values and sales has not only hit the real estate developers but affected the government's revenue figures as well. Therefore, to boost sales in Noida, the Uttar Pradesh Government has slashed circle rates of commercial property in Noida as well as residential ones.
The first initiative focuses on land, intending to increase the sale of land in Noida. The Municipal Corporation of Gautam Buddh Nagar decides to trim down the circle rates of the land with a hope to attract prospective buyers who can potentially purchase land in the region.
As proposed by the Municipal Corporation, the circle rate of commercial plots in Noida shall drop by 21.5 percent and waiving the six percent surcharge on housing development in Gautam Budh Nagar and bring down the registry rates.
The region of Gautam Buddha Nagar comprises of Noida, Greater Noida, Dadri, and Jewar. These four regions are currently having different circle rates. Therefore, the move to declare one rate for all these places is important. Considering the economic activities happening in the region, the minimum price for a circle rate is fixed once a year.
District Magistrate Mr BN Singh confirms the slash on Circle Rates
District Magistrate Mr BN Singh commented on the same, "There has been a considerable decrease in revenues over the past few years. Because of increasing circle rates, our targets of commercial areas were not met. We have thus decided to slash the circle rates".
He continued, "The 25 percent surcharge on shopping malls has already been removed. The state is also going to take requisite steps to reduce the floor price of 21 per cent in all commercial projects in Noida".
While compensating the farmers for the construction of Jewar Airport, INR 15,000 crores have already been given. An additional compensation amount of ₹ 3,000 to ₹ 4,000 crores will be paid to the farmers by the Government.
With the upcoming projects such as Jewar International Airport, operational expressways and metro connectivity in different sectors of Noida and Greater Noida, the region seems promising for the investors and homebuyers. The Government is hopeful towards revenue boost with the reduction of circle rates.