Facing slowdown, correction in NCR rates soon

‘A committee of senior officers has been constituted to suggest measures to dispose of unsold plots of various categories including lowering the reserve price,’ said Balvinder Kumar, vice-chairman of DDA. According to Kumar, these plots of various categories - housing, commercial, institutional and industrial- could not be sold despite efforts to auction them in the last five years.  

He added the committee is preparing an extensive list of such plots that would include 50 big plots of various categories in the city. ‘Depressed market and unrealistic reserve (minimum) price seem to be reason behind unsold plots,’ he added. Kumar, however, said that the market is expected to get ‘good sentiments’ under the new government which would be helpful to dispose of these plots.

Similarly, GDA, in its board meeting on 2 June, decided to freeze rates of all categories of properties till September 2014 citing slow market rate. ‘GDA is not able to dispose of its properties due to slowdown in real estate market so there is no scope to increase the rates further,’ said Santosh Kumar Yadav, vice-chairman of GDA. It’s pertinent to mention these authorities generally hike cost of land for various categories from 10-20 per cent, in every financial year.

In its board meeting on 2 June, Noida too decided not to increase rates of commercial properties for 2014-15. The authority also decided to decrease the reserve price of certain commercial activities like warehousing, bamboo market etc by 50 per cent and to bring down  the rates of stamp duty of several areas by shifting sectors from the posh group A into relatively less sought after group B category. Noida, however, increased rates of residential, institutional and industrial properties by around 10 per cent.