Hike In Circle Rates Would Increase Property Prices In Ghaziabad

The housing board’s decision to increase circle rates has left the stakeholders unhappy in Ghaziabad.

GHAZIABAD: The Uttar Pradesh Housing Board has increased the circle rates for residential and commercial plots in all sectors of Vasundhara. From the IST of April, the circle rates have been revised by 16% which has actually left the stakeholders very unhappy. The move has evoked a lot of criticism.

According to the Uttar Pradesh housing board’s superintendent engineer, K S Singhal, under the residential category circle rates have been upped from Rs 42,000 per square metre to Rs 48,800 per sq m in even-numbered sectors, a rise of 16%. Similarly, in odd-numbered sectors, the rate for residential plots has been hiked from Rs 38,000 per sq m to Rs 44,100 per sq m (16%).

"In the commercial plot category, the new circle rate in even-numbered sectors is up to Rs 97,600 per sq m from Rs. 84,000 per sq mm (16.1%)" Singhal said. "Again in odd-numbered sectors, the new circle rate is Rs 88,2000 per sq m as against the previous rate of Rs 76,000 per sq m (16%) under the commercial plot category" Singhal said.

Though the housing board’s decision to increase the circle rate has come as a part of restructuring the real estate sector, the hike to would take some time to settle in the minds of the stakeholders.

Manoj Gaur, vice-president, Credai (National) and MD of Gaurson,s says "At a time when the number of buyers has come down due to various reasons, the circle rate should not have been increased. This particular move of the housing board’s will definitely affect sales and to get over the problem will take some time".

Satnam Singh, managing director of Apex Buildcon Pvt Ltd too has criticised this step taken by the housing board. He said,"When Gurgaon and Delhi are slashing circle rates to attract buyers, it is really shocking why the circle rates in Vasundhara have been increased so badly".

Santam Singh also added that it won’t affect the small time buyers as the district magistrate’s circle rate is applicable only buyers on the lookout for flats and that circle rate is already high. This decision of the housing board’s will only make the builder shell out more money while buying plots.

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