It is a matter of both happiness and disappointment for the homebuyers of Noida. In a recent decision taken by the Noida District Administration, it has decided to offer a rebate on the surcharge, but at the same time, it was also decided not to make any change in the circle rates.
Circle rate is defined as the least price real estate asset, such as a plot, apartment, built-up house or a commercial property has to be registered when being transferred from one name to another. The rates are decided by the state government and may revise from time to time.
Based on these circle rates, the buyers have to pay 5% stamp duty charges while registering the property at registrar’s office in Noida. Due to the on-going slump in the real estate market of Noida, developers were demanding for the reduction in circle rates of residential properties by 20% so that they may be able to lure the homebuyers.
However, this demand has been denied by the Noida District Administration.
But, the homebuyers and builders, both have still a reason to cheer, that is, as Noida Administration has declared to offer up to 9% rebate on the surcharge in group housing societies on common facilities.
This waver is also applicable on commercial properties as it is changing the ratable value. With this, those who are registering their commercial properties are likely to see up to 50% reduction in charges.
What Does it Bring to the Homebuyers?
In the case of group housing societies offering amenities, such as lifts and power backup had to pay 3% surcharge. Now, this surcharge has been waived off by the Noida Authority. In addition to this, customers were liable to pay 3% surcharge on facilities like clubhouse, swimming pool or gymnasium. But, this surcharge has now been reduced to 2%. All and all, developers had to pay around 15% of surcharge on all the facilities that he is providing. Now, this has been dropped down up to 6% which will directly impact the pricing of group housing societies.
Suppose someone is intending to purchase an apartment in a group housing society worth ₹1 crore. The developer would add a 15% surcharge that he has to pay for the common facilities, taking the cost to ₹1.15 crore. You will have to pay registration charges at the sub-registrar office at 5% which amounts to ₹5.75 lacs.
With the new surcharge of 6%, the cost would drop down to ₹1.06 crores, which means, you have to pay only ₹5.30 lacs on stamp duty.