Noida To Do Away With Surcharge On Clubhouses, Swimming Pools, Gyms

Property investors and homebuyers have reason to cheer as homes are set to become more affordable in Noida, with the Noida district administration planning to waive the six per cent surcharge it imposed so far on developers for offering clubhouses, swimming pools and gymnasiums in their residential projects. Last year, the Noida district administration had done away with the nine per cent surcharge it imposed on builders for offering lifts power backup facilities in their projects.

In a notification issued on July 24, 2019, the District Magistrate BN Singh-led Noida administration also proposed to bring down the circle rate of commercial plots by 21.5 per cent to boost demand in this real estate segment, too, where activity has been muted since 2015. This move will help homebuyers across Noida, Greater Noida Dadri and Jewar, and is expected to help the property market in this region move towards revival.

Data available with PropTiger.com shows that Noida has been the worst-performing region among the nine key property markets in the country during the April-June quarter of the financial year 2019-20. Amid home sales declining 56 per cent during the quarter year-on-year, new launches also fell by more than half. Developers in this property market have an unsold housing stock consisting of 63,637 units, and they are expected to take about three years and a half to be able to sell this off, considering the current sales velocity.

Mahagun Group director, Dhiraj Jain, said the proposal by the district administration would benefit new homebuyers too, and would push demand. According to Prateek Group chairman, Prashant Tiwari, the move would push fence-sitters, who have been in a wait-and-watch mode since the government’s demonetisation move in November 2016, to make a move. The move, he said, would bring down the cost of property registration for buyers.