Property in Noida to Become More Expensive

Prospective house owners who have been fighting battles to get possession of their properties from the builders will now have to pay more for registering their property due to the recent proposal by the UP Registration Department. In a move to equate the registration rates in NOIDA with those as per the rest of the state, the Uttar Pradesh Stamp and Registration Department has increased the registration rates from current 5% to 7%. This has brought double trouble for the homebuyers as majority of the residential projects in Noida are being delivered late owing to delayed construction.

This all began in 2013 when a petition was filed by an environmentalist, in the National Green Tribunal (NGT) to stop the construction around the Okhla Bird Sanctuary. As per the orders, builders halted the construction work and as a result of which the possession was delayed by 2 years. In August 2015, the Center notified the Eco Sensitive Zone of the Okhla Bird Sanctuary and hence the construction of the properties resumed work. By Feb 2016 most of the developers did not have the completion certificates (OC). Only 16,710 flats of 26 developers received OC out of which only 810 have been registered.

Last year also the department had similar plans to hike the registry rate but many campaigns by various organizations did not allow them to do because even they were aware of the fact that if this law was passed it will have negative effects on the buyers as well as the sellers. This 2% rise could upset all the registrations and the department has decided to charge older registry rates for those residential projects in Noida that could not be completed due to the legal battle.

A number of flats that couldn't reach completion stages due to the stay during the legal battle that took more than two years to resolve are being delivered now. Till date only 20% of residential projects in Noida have received OC and are open for registry option whereas it will hit the remaining 80% in a bad manner. Due to the way warding and unreliable constructions by the builders, most of the expressway projects launched in Noida in 2009 are available now at the prices of 2010, the projects with a delivery timeline of 3 years have still not been delivered in 7 years. Even the ready for possession properties are also available at the prices of 2013 due to oversupply of inventory. The expert analysts predict that this is the right time to invest in property because after the absorption of these unsold flats, the prices are expected to rise.

The proposal would be total injustice for those who have bought property in Noida as they have already borne the brunt of paying EMI’s, rent for so many years and have not even got the custody of the accommodations and all this due to the delay of the developers. This step would be very unfair for the homebuyers who were forced to wait due to the ongoing legal battle regarding the demarcation of the OBS, and they actually bought the flats, started even paying for them but just could not get them registered.

As per the Additional District Magistrate, a rebate has been given on this stamp duty with an aim to promote industrialization. While in other UP districts the stamp duty will be 7%, it will stand the same for Noida also, once the proposal is approved at the government level. Also a rebate of 10,000 has been given if the property is in the name of a woman owner.

Overall this move may have a negative impact on the property in Noida as it raises the cost for buyers at a time when the real estate market is already stressed.

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