Realtors' body CREDAI has written to Uttar Pradesh Chief Minister Akhilesh Yadav requesting him not to increase circle rate of Noida as this will make flats unaffordable for buyers.
Circle rate is the minimum price at which a property has to be registered in case of its transfer. The rates are determined by state governments and are revised from time to time as per market dynamics
The decision by the Board of Noida Authority in its meeting dated June 9 to increase the circle rate up to 15 per cent is quite disappointing, CREDAI's Western UP chapter said in the letter.
Increase in the circle rates would affect a large number of flat buyers and lead to bad market sentiments, it added.
"The circle rates in these areas are much more than the prevailing market rates and any increase at this stage may collapse the real estate market as the flats would become unaffordable to the buyers," the letter said.
"We request your good-self to intervene and instruct the Chairman, Noida Authority not to implement the decision taken in the Board Meeting dated June 9 to increase the circle rate by 15 per cent," CREDAI said.
Increase in circle rates would divert the real estate investment to neighbouring states, it argued.
Keeping in view the recession and the attraction of investing in neighbouring states, CREDAI said it is essential that the Noida/Greater Noida/Yamuna Expressway Authorities should cut the circle rates at par with Haryana and Uttarakhand.
