To give a boost to the ailing property market, the UP government on a recent basis has cut circle rates for commercial as well as residential premises in the Gautam Buddha Nagar which comprises regions including Noida, Greater Noida, Dadri and Jewar. But experts in the domain, assume that the move is likely to impact buying sentiment positively anytime 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.
Circle rate is a minimum rate at which the property at the time of transfer of title i.e. sale or purchase is registered.
This is given the fact that both of these areas include the maximum number of completely stalled units which is worth a staggering 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.
Nonetheless, as far as the commercial space is concerned, the reduced rates could benefit potential buyers of commercial real estate.