Market rates much higher than circle rates in upscale Delhi colonies

Delhi/NCR
The Delhi government has announced a steep hike in circle rates to garner more revenue and check the use of black money in property transactions. The revised rates, approved by the Delhi cabinet, are expected to be notifed within a week by the lieutenant-governor.
For category A colonies such as Jor Bagh, Vasant Vihar, Friends Colony, Siri Fort and Ring Road bunglows, the new circle rate is Rs 2.15 lakh per square metre, a 250% hike over the existing rate of Rs 86,000.
This means nobody would be allowed to register land and immovable properties in these colonies for less than Rs 2.15 lakh per square metre. The market price in these colonies is still about four times higher than the revised rates.
In category B colonies -Greater Kailash Park-1 & II, Green Park, Neeti Bagh and Hauz Khas – the rates have been increased by 100% to Rs 1,36,400 per sq metre. Even in this case the market prices are two to three times higher.
“We have decided to hike the circle rates in the range of 15% to 250% so that property transactions reflect the real value. The government would be able to generate an additional revenue of Rs 800 crore annually,” CM Sheila Dikshit said after the Cabinet meeting.
The circle rate has been increased by 100% in C & D category colonies too. Colonies such as Kailash Hills, East of Kailash and Saket fall in C category and the rates here stand revised from Rs 54,600 per sq metre to Rs 1,09,200 per sq metre. In D category colonies like Amar Colony, Jangpura A and Janakpuri, the rate has been increased by 100% from 43,600 per sq metre to Rs 87,200 per sq metre.
In E category colonies, which includes Jama Masjid, Khirki Extension and urban villages like Adhchini, the hike is 30% — from Rs 36,800 per sq metre to rs 47,840 per sq metre.
In category F colonies, the circle rate are up 20%. So for those staying in Adarsh Nagar, Bhajanpura, Jamia Nagar and Neb Sarai, the rates are now going to be Rs 38,640 per sq metre. In category G – Jahangirpuri, Badarpur, Jasola and others – the rate increase is 15% (Rs 31,510). In the lowest category, H, which includes Burari, Chhatarpur and Bapraula, the new rate is Rs 15870 per sq metre, a hike of 15%.
In the case of DDA and cooperative group housing society flats, the minim um rates for calculating the registration value of the property has been doubled. So, if you own a flat of around 100 sq metre (1,000 sq feet), the minimum value for registration will be Rs 45,20,000.
In case of flats constructed by developers, the minimum value will be increased by up to 1.25 times that of DDA flats of the same size. In case of independent floors on a plot of land, the value of the floor will be calculated by computing the total cost of the building including the land cost divided by the number of floors.
The revised rates shall be taken into consideration for registration of instruments relating to land and immovable properties in Delhi by all the registration authorities under the provision of Indian Stamp Act at the time of registration of instruments under the Registration Act.
The circle rates were first introduced in Delhi in 2007, dividing the capital into eight categories, and were notified under the provisions of the Delhi Stamp (Prevention of Undervaluation of Instruments) Rules, 2007 on July 18, 2007.
Source: The Times of India, New Delhi

No work in Noida Extension till NCR board nod

Delhi/NCR
Early resumption of construction at Noida Extension’s housing projects is now ruled out as Greater Noida Industrial Development Authority (GNIDA) has ordered builders to keep work on hold till the court-mandated approvals are obtained. While the Authority did not say how much time the process would take, sources told TOI it would take at least a month.
Delivering its ‘Diwali gift’order of October 21 that ended months of uncertainty about the fate of these housing projects and 20,000 buyers, Allahabad High Court had made it clear that development in the area would be subject to clearance of GNIDA’s Master Plan 2021 by NCR Planning Board (NCRPB).
After meeting some property developers on Monday, GNIDA CEO Rama Raman ordered a halt to any ongoing construction till the “matter is sorted out”. The stay applies to projects in Noida Extension and other parts of Greater Noida. No approvals or completion certificates will be issued during this period.
Raman said the Authority had initiated formalities, and “details of all changes made in the (master) plan had been sent to the government for approval, and the state would forward the same to NCRPB”. He added GNIDA was “hopeful of getting the required nod soon”, but denied it had received any notice from the Board to halt construction. “It is not NCRPB’s prerogative to issue any such notice to the Authority.”
Raman said the Authority was required to inform NCRPB of changes to its Master Plan but it did not necessarily need the Board’s approval. “According to the state’s norms regarding Master Plan approval, any change in the plan must be in conformity with the NCRPB (guidelines). Changes in MP-2021 were incorporated way back in 2007, and at the time we had informed NCRPB,” he said, adding that changes made in keeping with NCRPB guidelines could be got approved by the state government.
Raman said GNIDA would also seek HC’s clarification on the order that seemed based on “a previous Allahabad High Court judgment of 1996 that directed the corresponding NCRPBs of all states to consult the federal agency”.
Source: The Times of India, New Delhi

Court judgement on Noida Extension a relief for home buyers

At a macro level, though the real estate sector is facing challenging times, there are firms exploring niche areas to drive business growth. A nascent trend gaining ground in the real estate landscape is developing homes for senior citizens.
According to the 2011 Census, there are more than 10 crore Indians above 60 years of age in India. Steadily increasing life expectancy, lack of safety and security in urban areas, rising number of financially independent senior citizens and trend of nuclear family life have made senior citizens an ideal target customer for niche offerings by real estate firms. Retirement homes offer services such as facilities management, easy access to healthcare services, security systems, recreation facilities and spiritual enclaves, among others.
The concept of retirement homes in India still has a social stigma of abandonment attached to it, says Saumyajit Roy, vice president, social infrastructure practice at Jones Lang LaSalle India. However, he said, the mindset is slowly changing.
Contemporary retirement homes or resorts have replaced the earlier concept of old age homes, which symbolized the last option for the needy and abandoned elderly.
A recent survey of households with senior citizens showed that more than 60% found the concept of a senior citizen’s club as viable and practical.
Paranjape Builders, Ashiana Housing, Sobha Developers, Rakindo Group, Brigade Group and Riverdale Retirement Resorts have forayed into ‘senior living’ projects.These projects are operational in major cities such as Delhi, Pune, Bengaluru, Chennai and Coimbatore. LIC Housing Finance has also forayed into the sector with Care Homes in Bengaluru.
Source: The Economic Times, Bangalore