In a move to increase their coffers by spiking up property registrations, the Uttar Pradesh government has recently slashed the circle rates of residential and commercial properties in Gautam Buddh Nagar, comprising of essentially four regions such as Noida, Greater Noida, Dadri and Jewar. Although this move is also aimed at giving a boost to the buyer sentiment and resultantly to the property sales in the region, industry experts don’t think this is going to happen soon.
“As far as residential realty is concerned, though the move will help bring down the registry rates to an extent, its overall impact to boost buyer sentiments may actually not happen. The fact is that Noida and Greater Noida regions are grappling with issues of project execution and completion while property prices are of least priority for buyers as of now,” says Santhosh Kumar, Vice Chairman, ANAROCK Property Consultants.
As per ANAROCK’s recent research, for instance, both these regions have maximum ‘completely stalled’ units among the top cities amounting to nearly 1.17 lakh units worth a whopping Rs 80,500 crore.
“Imagine if these units were complete, the registration amount paid by the buyers to the government would have definitely increased their coffers by a massive amount. Hence, to revive buyer sentiments, a strict policy to enforce project completion of all stalled or delayed units is the real need of the hour,” adds Kumar.
However, so far as commercial realty is concerned, the move could be a boon simply because the construction of the Jewar International Airport will take off soon and those who had been eyeing commercial properties could benefit from the reduced rates. With reduced rates, they may now come forward and take the plunge.
However, will the slashing of the circle rates make these regions more attractive for buyers in the near future compared to other NCR regions like Gurugram?
Industry experts say that this is also unlikely as more than property prices, buyers are currently concerned about project execution. Seeing the state of many homebuyers fighting legal battles for years, the prospective new buyers are definitely holding on to their decisions with new launch properties being definitely unattractive to them.
“Though regions like Noida already pip Gurugram in terms of better pricing and value for money, the issue of stalled units is far more appalling in Noida. Hence, to boost up buyer sentiments and thus housing sale, the government needs to tighten its noose on errant builders and work towards project execution,” suggests Kumar.