The 2% hike in the stamp duty has really irked the homeowners in Noida. The Uttar Pradesh government has raised stamp duty in Noida, Greater Noida and Yamuna Expressway region from 5% to now 7% from April 01. It is going to burn a hole of 50 thousand to 2 lakh rupees in the home owner’s pocket, depending upon the size of the unit. This is by no means small.
|Construction Site at Wave City Center, Sector 32, Noida
People are already reeling under the stress of delayed projects and rising costs across all commodities in the country. An additional payout in higher registration charges is an unwelcome move that is finding resistance among Noida homeowners and the property developing community.
Noida homeowners and developers in the region have come together and through Janhit Morcha are reportedly planning a protest demonstration on March 29 at the Registrar Office in sector 33 to oppose the stamp duty hike.
This hike, however, is filling up UP government’s kitty fast. The UP stamp and registration department is open on holidays from 9am to 7pm till March 31 to facilitate last minute rush for property registration. People are making a beeline to get their property registered before April 01 when the hike in 2% registry charges would come into effect. It is reported 212 registrations were carried out on Sunday clocking a whopping Rs 7 crore revenue collection figure while Monday saw 250 registrations adding 6.5 crores to government’s coffers.
Some homeowners are asking the builders to complete the paperwork before the deadline. There’s a case of Prateek Laurel located in sector 120 where home owners are demanding the builder to deposit the registration fee before the hike comes into force on April 01. The home-buyers have already paid registration fees to the builder and his timely move will save some 750 flat owners the brunt of stamp duty hike. The issue is being highlighted by Senior Citizens’ Welfare Association by staging a peaceful protest.
The stamp duty although generating revenues for the government but is a big blow to the already stagnant real estate market in the region. The NGT ruling over Okhla Bird sanctuary issue had given a breather to the builder community. Nearly 50 builders are in line for issuance of completion certificate. The real estate demand in the region had perked up post this NGT order. But the stamp duty hike is a big negative as it will make home-buying costlier. Together with transfer fees and lease-rent (1-2.5% of the total cost of the property) the property prices will soar and dampen the property market which had seen a little revival lately.
The need of the hour is creating an investor-friendly environment. The focus should be on improvement in basic amenities, public transportation, better water resource management, uninterrupted power supply, proper implementation of system of rain water harvesting, better traffic management and improving law and order situation in the region.
- the hike is not in favor of investors and home buyers
- increase in cost will deter people from buying property in Noida
- government should work towards creating an investor friendly environment
- better traffic management systems, water resources and uninterrupted power supply to improve quality of life should be the focus of administration
- government should focus on improving law and order situation