Real estate Noida markets could witness a new found boost owing to a landmark development whereby land conversion rates have been brought down by the authorities. Demand for flats in Noida has not been all that high lately according to several India property reports and studies. However, developers can now take heart from the slashing of land conversion rates to around 10% from the previous high rate of 25%. This development might have the potential to boost demand for Noida flats and other properties according to several studies and reports on Indian real estate based on their locations. This guideline for reduction of conversion rates has been issued by the Noida Authority based on popular demand. A similar regulation has also been made operational in Delhi and this may have played a role in sparking this new development. Before this ruling, allottees possessing industrial and residential property had to pay a charge or impact fee to the Authority for converting the same into mixed land use developments. This fee worked out to a whopping 25% of the total cost difference between commercial rates or reserve prices of the locality in question and predominant industrial and residential sector costs. The approval of the reduction in conversion rates will now boost the conversion of industrial and residential properties into mixed use developments. This may give a fillip to developers and lead to the development of several mixed use projects that actually bring back healthier sales volumes and progress into the Noida market.
The impact fee will have to be paid in a lump sum though while charges for water supply and electricity will also prevail in specific cases as per the existing commercial rates. Mixed land use conversion will boost the creation of commercial spaces in residential and industrial spaces and vice versa. Banks and guest houses can also be integrated into residential projects while industrial plots can be used for integrating museums, automobile showrooms and art galleries among other commercial and retail projects. Convenience stores, ATMs, canteens and other social amenities can also be brought into residential developments more easily courtesy this lower rate.
The impact fee will have to be paid in a lump sum though while charges for water supply and electricity will also prevail in specific cases as per the existing commercial rates. Mixed land use conversion will boost the creation of commercial spaces in residential and industrial spaces and vice versa. Banks and guest houses can also be integrated into residential projects while industrial plots can be used for integrating museums, automobile showrooms and art galleries among other commercial and retail projects. Convenience stores, ATMs, canteens and other social amenities can also be brought into residential developments more easily courtesy this lower rate.
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