Ghaziabad authority to freeze sector rates, but DM may likely hike circle rates

Ghaziabad Development Authority freezes sector rates to clear unsold properties, while district administration plans a "reasonable hike" in circle rates to match market rates.

The Ghaziabad Development Authority (GDA) will not hike its sector rates for properties and have decided to freeze the rate prevailing since last year. On the other hand, the district administration officials said that there will be “reasonable hike” in circle rates this year so as to bring the rates 15-20% below the prevailing market rates in specific areas.

(Above) Raj Nagar Extension in Ghaziabad. The GDA has decided to freeze sector rates this year as about 1,742 of its properties have remained unsold in past auctions. (Sakib Ali/HT Photo)

The sector rates are rates at which the GDA sells it properties for the first time to an allottee. The subsequent sales are taken up on circle rates which are defined by the district magistrate every year.

The GDA officials said the decision not to increase the sector rates was taken as about 1,742 different properties are lying unsold since the past several years.

The unsold properties in different housing schemes include flats under various categories and also includes those meant for economically weaker sections and lower income groups.

“This year, we have proposed that there will be no hike in sector rates . There are a number of unsold properties with us. There will be no increment in land cost as well,” said Atul Vats, vice-chairperson, GDA.

The decision to freeze the sector rates is prevalent since 2012 when officials decided to bring the sector rates and circle rates on par with each other. Otherwise, consistent hikes in sector rates have rendered prices of GDA properties higher than the prevailing market rates.

On the other hand, the district administration officials said the circle rates will be increased this year, but they cannot define an average increase across residential and commercial properties.

“The hike in circle rates will be rational and reasonable. We will try to hike the circle rates to bring them closwer to prevailing market rates. If we do not do that, people will resort to undisclosed/illegal transactions in order to sell/purchase properties. As per our estimate, we will keep the circle rates 15-20% below the market rates this year. The hike will mostly be in developed colonies,” said Pushpendra Kumar, assistant inspector general (stamps).

According to the prevailing circle rates, the rates in different residential localities of Kaushambi, Vaishali, Suryanagar, Chandranagar, Ramprastha, Indirapuram and Vasundhara will be between ₹66,000-85,000 per square metre (sqm) on properties located adjacent to roads having a width up to nine metres.

The rates will be between ₹70,000-90,000 per sqm on properties located on roads more than nine metres wide and below 18 metres.

The officials said areas alongside the Regional Rapid Transit System (RRTS) corridor may not see much hike as the GDA is yet to finalise the draft Master Plan 2031.

“It is only after the draft Master Plan 2031 is finalised that we may proceed to define/hike the circle rates in these areas,” said a senior officer from Ghaziabad district’s finance and revenue department.