Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
Last week, the Noida Authority raised the prices of plots meant for residential, group housing, and institutional purposes by a range of 6% to 10%. The rates for flats constructed by the Authority or commercial properties rented by it however remained unchanged. The decision to increase the land rates was sanctioned during the Authority's board meeting, headed by Manoj Singh, the Chairperson of the Authority and the Commissioner of Infrastructure and Industrial Development.
The Authority has made its second revision of land rates in eight months. In August of last year, they increased the allotment rates by 20-30%, but there had been no changes in the rates for two and a half years prior to that, during the pandemic. Last week, they announced that residential plots in the E category, located in sectors 102, 115, 158, 162, and all other sectors except commercial areas, would see the highest increase of 10%. Plots in sectors A, B, C, and D would see a 6% increase, while rates for plots in the A+ category remained unchanged.
The rates for assigning group housing, industrial, IT/ITES, and institutional plots were raised by 6%. Furthermore, during a meeting, it was decided to increase the Authority's budget by almost 40% for the current year. The board approved a budget of Rs 6,503 crore, which is a considerable increase compared to last year's allocation of Rs 4,579 crore. The Authority also raised its revenue target by 40% to Rs 6,920 crore.
During the previous financial year, the Authority's income and expenditure exceeded their intended goals. The Authority had set a target of collecting Rs 4,880.6 crore, but they were able to collect Rs 6,481 crore in 2022-23. Additionally, they spent Rs 4,990 crore, which was higher than their budget of Rs 4,579 crore.
According to officials, the increase in revenue was primarily due to the allocation of plots through e-auctions. This achievement was the highest in almost ten years in terms of the difference between the target and actual collection. For this year, the Authority has allocated Rs 500 crore for land acquisition, while Rs 1,000 crore will be spent on plots in the New Noida (Dadri-Noida-Ghaziabad investment region).
The Noida Authority's decision to raise the prices of plots meant for residential, group housing, and institutional purposes by a range of 6% to 10% is expected to impact the real estate market in the region. This move comes on the back of the Authority's second revision of land rates in eight months, which indicates their intention to raise revenue through land allocation. With the increase in the Authority's budget by almost 40% for the current year and their revenue target set at Rs 6,920 crore, the expectations are high. It remains to be seen how this move will impact the demand for land and property in Noida, and whether it will have a positive or negative impact on the region's real estate market.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
