DELHI: Your dream house in Greater Noida has just got costlier. In its 97th board meeting on February 13, Greater Noida Industrial Development Authority (GNIDA) announced a 10.21% hike in the allotment price across all categories of land in the city. The hike comes into effect from April 1 this year. The authority will soon take out a formal notice.
Officials said allotment rates across all categories (except industrial in Greater Noida Phase-II) have been hiked by 10.21%. “Plots in Phase II will be cheaper by almost 27%,” said Rama Raman, chairman and CEO, GNIDA.
The Authority had in May last year increased the land rates by 8.53%. “The increase in prices happens every year. The new per square metre rates will be applicable from April 1, 2014,” said Harish Verma additional CEO, Greater Noida Authority. “The hike in allotment rates is crucial considering increase in land costs, inflation rates among other factors,” Verma said.
According to a source, even as there is no immediate plan to increase the rates of land in Noida and along Yamuna Expressway, they will also be hiked eventually.
The hike is important for GNIDA as it is facing a major cash crunch. The over 2-year-old land row between the Authority and farmers has imposed an extra burden on GNIDA in the form of enhanced compensation and rehabilitation packages for the farmers. Besides, many development projects have been stuck for the past several months, said Authority officials.
As per the new rates, residential plots in Greater Noida have got dearer by almost Rs 2,068 per square metre while for commercial an extra Rs 4,099 per square metre will be charged. Institutional plots will be priced at Rs 11,589 per square metre compared to last year’s rate of Rs 10,517 per square metre, officials said. “We have decided to exclude the new developing industrial sectors from the hike to give a boost to the industry,” Verma said.
“In developing industrial sectors we have reduced the rate by Rs 2,400 per square metre, bringing down the existing rate of Rs 8,900 per square metre to Rs 6,500 per square metre,” he said.
There was a mixed reaction among developers on the hike in the allotment rates. While some said booking rates will go up now, others said property in Greater Noida will still be affordable compared to other regions in the NCR. “Rates did not slip even when there was a slump and there is strong possibility of a steep hike in rates after Lok Sabha polls. The market is in a revival stage and if buyers delay in buying property they would have to shell out extra. This is the right time for making an investment,” said RK Arora, vice president of CREDAI (west UP) and Supertech Group CMD.
“With world-class infrastructure on offer, buyers are willing to pay the price,” said Amit Gupta, MD, Orris Infrastructure.