The Noida Authority‘s recent decision to increase land allocation rates by 6% for residential, institutional (IT, ITES, and data centres), and industrial categories has raised concerns among property buyers and investors. While the rates for commercial properties remain unchanged, the revised rates for housing and industrial sectors will likely significantly impact the land registration cost.
New Rates and Their Impact
Residential plots in premium areas, such as sectors 14A, 15A, and parts of sector 44, remain steady at Rs 1.75 lakh per square meter. However, for other residential sectors, plot prices now range from Rs 55,000 per square meter to Rs 1.4 lakh per square meter, an increase from Rs 3,500 per square meter to Rs 8,000 per square meter.
For group housing, the revised rates range from Rs 75,000 per square meter to Rs 2 lakh per square meter, marking an increase of Rs 4,500 to Rs 12,000 per square meter. Institutional land rates now range from Rs 35,000 to Rs 80,000 per square meter, with an increase of Rs 2,000 to Rs 5,000 per square meter.
For IT and IT-enabled services (ITES) sectors, key areas like sectors 1, 16A, and 24 have seen rates go up from Rs 75,000 per square meter to Rs 80,000 per square meter. In Phase 2, the rate increased from Rs 28,000 per square meter to Rs 29,500 per square meter, while in Phase 3, it rose from Rs 39,000 per square meter to Rs 41,500 per square meter.
Calculation of Registry Cost
The registration cost can be calculated as follows:
Registry Cost = Land Area (sqm) × New Rate per sqm × Stamp Duty Percentage
For example, if you purchase a plot of 200 sqm in a non-premium sector at the new rate of Rs 55,000 per sqm, and the stamp duty is 7%, the calculation would be:
- Registry Cost = 200 × 55,000 × 0.07 = Rs 7,70,000
This increase in registry cost can substantially impact homebuyers and businesses looking to set up in Noida.
Expert Opinion
Real estate experts believe that while the rate hike may seem moderate, the cumulative effect on the registry cost is significant, especially for large land parcels. The increased rates may slow down the momentum of new investments, particularly in non-premium sectors where the hike percentage is more noticeable.
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