Inspite of online property experts warning administration against increasing circle rate the district administration is going ahead with the same saying that 95% of the registration of flats in Noida would not be affected by the increase. Increase in circle rate from 15% to 25% is only going to worsen the situation for all the real estate players. Moreover the situation for properties in Noida including flats in Noida sector 76 is in clear contrast as compared to Gurgaon real estate where the rates have been slashed in an attempt to boost the real estate sector. People are now just enquiring for room for rent.
Increase in circle rate along with the proposed increase in stamp duty from 5% to 7% is going to increase the overall cost of acquisition of properties in Noida including flats in Noida sector 76. Builders are complaining that transactions are not happening in existing circle rates and if the circle rates along with the stamp duty are increased it will be a double whammy for the buyers of flats in Noida. Builders of flats in Noida argue that the real estate market is not doing well and currently government should do everything to encourage the buyer but just the opposite is happening currently.
Moreover as the circle rates will increase the cost for the developer will also increase as the builders have to pay many charges according to circle rates. This burden will again be transferred to the buyers. Noida real estate is known for its affordable dwellings. Builders are arguing that government is taking all these measures so that they can increase the revenue but in an attempt to do so they are only discouraging people from doing transactions. Increasing circle rates will increase the minimum rate at which transactions are registered and with this a 2% hike in stamp duty rates will hit the customers of flats in Noida.
Noida real estate already has several unsold units and all this is only going to further increase the unsold unit inventory. Builders of Noida real estate are already facing liquidity crunch and if the situation of stagnancy continues then the situation is only going to worsen for them. The civic authorities however reject all these claims as they say that market prices of properties in Noida including flats in Noida sector 76are way lower than circle rates and with increase in circle rates only 5% of properties which lie in the premium section will be affected. Online property experts however have a different opinion and online property experts predict that the sales of units in Noida real estate will be badly affected even prospects of room for rent might be affected.