Homebuyers Alert! Land prices in Noida to go up by 20-30% after 3 years

New Delhi: The land rates in several categories will increase by 20–30% according to the Noida authority, but the rate for the A+ category will remain the same at Rs. 1,75,000 per square metre.

According to a statement released by the authority following its 205th board meeting on August 11, prices for the A to D category (priced between Rs 39,440 and Rs 92,950 sq m) have increased by 20%, and prices for the E category have increased from Rs 36,200 to Rs 41,250 per sq m. Read More: Bank Holidays in August 2022: Banks to be closed for 5 days in a row from today; Check list

Along with raising residential building prices by the same amount, the authority also increased group housing rates by 20%. Previously, the cost of a plot for a group housing project ranged from Rs 51,000 to Rs 1.3 lakh per square metre. Read More: PPF Scheme: Save Rs 1.5 crore for retirement by investing Rs 1.5 lakh every year, here's how

According to the report, prices for land classified as institutional use, which is not linked to residential rates, have increased by 20%. Industrial category lands in Phases 1 and 3 have seen price increases of 20%, while those in Phase 2 have seen price increases of 30%. Similar to this, phase 1 and phase 3 land rates have gone up by 20%, while phase 3 of the IT/ITES lands has seen a 30% increase.

The authority also stated that lessees in the residential, industrial, institutional, IT, and ITES categories who choose to pay in one lump sum within the allotted time will receive a 2% discount.

The terms and conditions for the group housing plot allocation were modified by the Noida authority. The consortium members must now maintain 100% ownership of the company until they take possession. It will now be necessary to deposit the entire premium within 90 days of receiving your plot allocation. The authority has now mandated, similar to RERA, that the developer open an escrow account in addition to providing information to the authority on a quarterly basis, such as buyer names, flat numbers, and amounts to be deposited in that escrow account.

The authority also made the decision to extend the leases of allottees whose projects could not be finished and whose leases had expired on March 21 of the previous year by a year. The Covid-19 pandemic has been taken into consideration when making the decision.

In addition, the authority decided to stop charging a 2.5% transfer fee when land was transferred between blood relatives such as brothers and sisters, brothers and brothers, and sisters and sisters.

The authority also changed its time extension policy at the board meeting. Previously, the fee for group housing and residential plots was 4% in the first year, increasing 1% yearly until the sixth year, and then 10% yearly from the seventh to the tenth year. In the future, it will only charge 1% in the first year and between the second and tenth year, 2% to 10%. It will start charging 10% annually after 10 years.

After almost three years, the Noida authority has increased the rate. Rate increases were last made in October 2019.