For property owners in Noida,
this May 2012 brings in good news. The Property ownership in Noida will be
freehold according to new ownership policy. The Government of Uttar Pradesh
announced that properties in Noida and Greater Noida including the Yamuna
Expressway will become have free hold ownership.
According to present property
regulations in the Noida-Greater Noida Belt, land will be given on rent for a
period of 90 years. The government has authorized various slabs for land, based
on annual lease. There are charges of 10% for residential properties.
For properties falling in the segment of industrial and commercial
establishments, the rate is fixed at 27.5%. Institutions also come in this
rate. The pct charged will be on the total value of the type of property.
This new ownership policy will
benefit the buyers. With the law implemented, those buying plots or flats from
builders will not be at disadvantage. They can be actual owners when this law
of freehold comes into effect.
The Urban Land Ownership Policy,
which is followed by the DDA (Delhi development authority fixes two types of
property ownership- Lease-hold or freehold. The lease-hold properties are those
where ownership period is specified and it may vary from 30 years to 100 years.
In free hold ownership, the property is in the name of the buyer till he sells
to others.
The Uttar Pradesh Government is
following the Delhi Development Authority's freehold policy. The DDA has
allocated land to users for different purposes- commercial, residential,
industrial, institutional et al.
Earlier, the land was given on lease with the DDA received ground rent.
This was gradually changed and the leased properties
were given freehold ownership. Most of the land under DDA is under freehold
ownership, with the exception commercial and institutional properties.
The Uttar Pradesh Government is
trying to follow similar land regulations. It is also expected that other NCR
cities like Gurgaon, Ghaziabad and Faridabad will follow suit.
Impact of this Freehold Ownership Regulation:
The buyers welcome the freehold
ownership policy. The Noida-Greater Noida belt used to have loopholes in the
land ownership regulation. Individual buyers or even builders are not the real
owners of land. Investing so money on construction of buildings and development
of infrastructure around and not been the real owners was an encouraging
policy.
With this new land ownership regulation,
property developers and buyers will be benefitted. To convert the land for
leasehold to free hold, a conversion charge is required to be paid. The
development authority has not decided on this charge yet. With the
implementation of freehold ownership policy, property transfer will become
easier.
Ravi Chauhan writes on the behalf
of ORI Group Noida, which is the
leading real estate portal providing genuine and accurate information about the
current real estate projects such as Ecnon Kings Court.
Find more details about Ecnon Group on OriGroupco.in