business News: Property prices in Noida, Uttar Pradesh are going to get costlier in the coming days. In the board meeting of Noida Authority held on April 23, the allotment rates of residential plots, group housing and institutional plots have been increased by six to 10 percent.
Due to increase in land allotment rates, people will have to spend more money in setting up industries and building houses. In 2022 also, the Noida Authority had increased the allotment rates by 10 to 15 per cent. This year too, property rates have been increased by 10 per cent.
19 proposals were put forward in the board meeting chaired by Manoj Kumar Singh, Commissioner of Infrastructure and Industrial Development and Chairman of Noida Authority. During the meeting, maximum 10 per cent increase was done in E-category residential sectors. However, there has been no change in the property rates of A-plus category residential areas.
While the rates of plots in sectors of A, B, C and D categories have been increased by six percent. There has been no increase in the rates for residential buildings and commercial properties. The Noida Authority had received high rates in the auction of industrial plots in the last few months. In such a situation, the property rates of Phase 1, 2 and 3 of the industrial area have been increased by six percent. In the institutional property sector too, IT/ITES and data center use properties located in Phases 1, 2 and 3 grew by six per cent.
Cost of residential plots:
Before August 11, 2022, the cost of residential plots in Sector- 102, 115, 158 and 162 etc. was 36,200 square meters. Now the base price for buying plots in these E-category sectors has gone up to Rs 45,380 per square metre. That too will be auctioned during the e-auction and the plot will be given to the highest bidder above this base price.
That is, in just eight months, one square meter of land has become costlier by Rs 9,180. If this increase is seen in percentage, then there has been an increase of about 24 percent. The prices of land are increasing continuously due to the increase twice within two months.
On August 11, 2022, the property prices were increased by about 14 percent and in the meeting held on April 23, 2023, the proposal to increase the prices by 10 percent was approved. If we talk about the plots available in the industrial area, then there has been an increase of about 40 percent in just eight months, while the price of gold has increased by 24 to 28 percent in the same period. Therefore, it is to be seen that the land available for residential and industrial purposes in Noida is increasing faster than the price of gold.
When a proposal to increase the price of a property is presented during the board meeting, before that a lot of paperwork is done by any authority. Research is also done and a team works on it. A committee is constituted by the authority to increase the price of the land.
This committee fixes the rate per square meter of the property by adding land acquisition cost, development cost, external development cost, maintenance cost and other expenses. Category and location are also considered along with the consumer price index set by the Reserve Bank of India (RBI). There has been an increase of six per cent in this index in the last financial year.
Land prices are skyrocketing in Noida and Greater Noida. Town planners are not surprised by the move as they say it was bound to happen because of the way the town planning of Noida and then Greater Noida has been done, it is going to be the costliest property in NCR in times to come.
Town planner Abhinav Singh Chauhan told the media that the way commercial areas were built here, roads were built, transport facilities etc., prices were bound to increase here. Along with this, now a network of transport is being laid here.
He said that the most important work that the Noida Authority completed on time was town planning and hence forward planning has been done keeping the future in mind. After Noida, Greater Noida and Yamuna Authority where the much talked about projects are about to come up. Due to this the land prices are constantly touching the roof.
(With IANS inputs)
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