In a recent development, property prices in Noida, Uttar Pradesh, are set to experience a significant rise in the near future. During the board meeting held on April 23, the Noida Authority approved an increase of six to ten percent in the allotment rates for residential plots, group housing, and institutional plots.
This hike in land allotment rates implies that individuals will have to allocate more funds for establishing industries and constructing houses. In 2022, the Noida Authority had already increased the allotment rates by 10 to 15 percent. This year, an additional 10 percent increase has been implemented.
Under the chairmanship of Manoj Kumar Singh, Infrastructure and Industrial Development Commissioner and Chairman of Noida Authority, the board meeting witnessed the proposal of 19 proposals. The e-category residential sectors experienced a maximum hike of 10 percent. However, there were no changes in the property rates for the A-plus category residential sectors.
Plots in the A, B, C, and D category sectors saw a six percent increase in rates. Residential buildings and commercial properties, on the other hand, did not witness any rate changes. The Noida Authority had recently obtained higher rates in the auction of industrial plots, leading to a six percent increase in property rates for phases 1, 2, and 3 of the industrial area. Additionally, there was a six percent increase in IT/ITES and data center properties in the institutional property sector located in phases 1, 2, and 3.
Residential plot costs:
Before August 11, 2022, the cost of residential plots in sectors such as 102, 115, 158, and 162 was Rs 36,200 per square meter. Now, the base price for purchasing a plot in these e-category sectors has risen to Rs 45,380 per square meter. The plots will be auctioned during e-auctions, and the highest bidder above the base price will be awarded the plot.
This signifies an increase of Rs 9,180 per square meter in just eight months, amounting to a hike of approximately 24 percent. Land prices have been steadily rising due to two increases within a span of two months. The first increase of around 14 percent occurred on August 11, 2022, followed by the approval of a 10 percent increase in the meeting held on April 23, 2023. Notably, the price of gold increased by 24 to 28 percent during the same period. Therefore, it is evident that land available for residential and industrial purposes in Noida is appreciating at a faster pace than the price of gold.
When a proposal to increase property prices is presented during the board meeting, extensive paperwork is conducted by the authority beforehand. Research is conducted, and a dedicated team works on the proposal. A committee is formed to determine the land prices per square meter by incorporating land acquisition expenses, development expenses, external development expenses, maintenance expenses, and other factors. Factors such as category, location, and the Consumer Price Index fixed by the Reserve Bank of India (RBI) are also taken into account. The Consumer Price Index experienced a six percent increase in the last financial year.
Noida and Greater Noida are witnessing skyrocketing land prices. Town planners are not surprised by this development, as they anticipated that the town planning of Noida and Greater Noida would result in these areas becoming the most expensive properties in the National Capital Region (NCR) in the future.
Town planner Abhinav Singh Chauhan explained that considering the commercial sectors, road infrastructure, transportation facilities, and other factors, the increase in prices was to be expected. Additionally, the transportation network is being expanded in the area. He emphasized that timely completion of town planning by the Noida Authority has paved the way for future planning. Notably, much-anticipated projects are set to emerge in Noida, Greater Noida, and Yamuna Authority, further driving up land prices.