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UP Housing Board has implemented a substantial hike in circle rates for townships under its administration across the state of Uttar Pradesh. This revision directly impacts properties situated in the areas of Vasundhara and Siddharth Vihar, which stand in close proximity to the upcoming RapidX corridor set to commence operations this month. Officials have confirmed that the revised rates will come into effect from April 1. The decision to increase rates in Vasundhara and Siddharth Vihar was driven by the notable surge in property demand due to their advantageous location near the RapidX route.
Sunil Sharma, an estate management officer at the board, expressed that the board has raised circle rates for all townships under its jurisdiction in the state. However, in Ghaziabad, the revised rates will only apply to Vasundhara and Siddharth Vihar. As a result of this revision, prospective homebuyers will be required to pay higher stamp duty, consequently leading to an overall increase in property prices. Regarding the flats constructed by private developers and individual plots in Siddharth Vihar, the circle rate has been augmented by Rs 850 per square metre.
Officials have highlighted that there are approximately a dozen ongoing projects in Siddharth Vihar, encompassing a sprawling area of 635 acres. In the case of Vasundhara, which is divided into 19 sectors, the new circle rates will vary depending on the specific sector number. For sectors with even numbers, the rates have been raised to Rs 68,300 per square metre from the previous Rs 66,300 per square metre. Similarly, in sectors with odd numbers, the revised rates now stand at Rs 61,900 per square metre compared to last year's Rs 59,900 per square metre.
It is worth mentioning that circle rates for properties catering to the low-income group will remain unchanged. For instance, the circle rate for Brahmaputra Apartment in Siddharth Vihar will stay at Rs 55,600 per square metre. Likewise, there has been no revision in the circle rate of Rs 43,800 per square metre for the Ganga, Yamuna, and Hindon apartments in the same locality.
When questioned about the rationale behind this hike, a senior board official explained that both Vasundhara and Siddharth Vihar fall within the "influence zone" due to their close proximity to the RapidX corridor. The official further stated that firstly, there has been a noticeable improvement in market sentiments within the real estate sector following the pandemic. Secondly, the increase in circle rates is not exorbitant. We believe it is justified considering the rising demand for properties in these two areas.
However, realtors, represented by Credai, have criticized this hike, deeming it unnecessary. Gaurav Gupta, the secretary of CREDAI's NCR chapter, mentioned that with the Reserve Bank of India already raising home loan rates from 6.5 percent to 9 percent, buyers are already burdened. The increase in circle rates will only add to their financial strain.
In summary, the UP-Housing Board's decision to raise circle rates near the RapidX corridor has generated mixed reactions, with officials defending it as a reflection of market demand while realtors express concerns about the additional financial burden on buyers.
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