Noida land rate hike: What will change for homebuyers?
PremiumNoida has lately been witnessing an increase in demand for new luxury and large accommodations
If you were planning to buy or invest in a property in Noida, here’s some bad news for you. The Noida Authority has decided to increase the land rates by 20% to 30% across several categories. So, this will dampen the mood of homebuyers planning to buy a house shortly as they will have to bear the brunt of increased property prices in the region.
Noida has lately been witnessing an increase in demand for new luxury and large accommodations.
The land rates have been increased for the first time after three years and that too, by 20-30%. Although it might jangle the buyers in the beginning eventually, things will be alright, says Ansh Batra, Director, Buniyad Group.
“Hikes across several categories have been announced but have witnessed only an increase of 20-30% as it was kept at low rates during the pandemic times," Ansh Batra said.
He added that it is also a sign of growing market resilience and enhanced capabilities of buyers and investors who are investing in land, adding to the revived growth trajectory of the real estate sector in India.
Buyers both residential and commercial along with high-interest rates and increase in the cost of construction and now the spike of an average of 20% on land price will have to shell more money, says Ajay Rakheja, President - Commercial Real Estate, Berkshire Hathaway HomeServices Orenda India
This would become wait and watch for a buyer for future new launches. Ready to move in will continue taking the benefit as actual users, he further added.
Yash Miglani, MD, Migsun Group says that the increase in Noida land rates across several categories might dissuade buyers who were planning to consider starting investments in land.
MINT PREMIUM See All
“It is easy to guess that the prices of projects coming up in the future will also surge, which expectantly put the homebuyers at odds," adds Yash Miglani.
The increase in the land rates of Noida will impact the property buying scene in the city. Sanjay Sharma, Director, SKA Group says while people looking for land in Category A+ might not be affected by the decision as the rates remain unchanged in the category. It must be noted that it comprises a few sectors of A and B Block.
“Other categories from A to E have seen an imminent hike which could bring down the property transaction rates and buyers might reassess their decisions to buy land and put it on hold for a while until the land rates are brought to a lower spectrum. The flat prices in future projects will certainly be sold at increased prices so I feel this is the best time to invest in projects while the housing prices are reasonable," said Sanjay Sharma.
The land rate hikes announced by the Noida Authority will affect the residential, industrial, group housing as well as IT-ITES property rates. The increase by 20-30% across several categories will most certainly push buyers from the property market chains as it would not be a plausibly beneficial deal for them. The housing and commercial units of upcoming projects will be sold at high prices, and the burdens will eventually be borne by the buyers," said Deepak Kapoor, Director, Gulshan Group.
Noida land rate hike
The authority has divided the entire city into six categories based on residential properties like Category A+ which includes only A and B blocks of Sector-14A, 15A, and 44. This time, the rates for the A+ category have remained unchanged at ₹1,75,000 per sq m, according to an official statement issued by the authority. The authority has hiked the prices of category A to D category by 20% and E category to ₹41,250 per sq m from earlier ₹36,200. It has been said that the group housing rates have increased by 20% and industrial property rates by 30% in phase 2, according to the board meeting. A 30% hike was also made for phase 2 IT-ITES properties and 20% for phase 1 and 3 properties, that are not linked to residential areas.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less