Noida based real estate developers have written to the chief minister of Uttar Pradesh requesting him to defer the land dues charges by one year.
Under the Uttar Pradesh chapter of National Real Estate Development Council (NAREDCO-UP), the developers have said that the EMIs OD land dues falling between April 2020 and March 2021 should be deferred till March 2021.
“As per the Uttar Pradesh government order in December 2019, projects will get the zero period benefit only if they are completed by June 30, 2021. In view of the COVID19 the time required to re-start the incomplete projects will increase as the developers need to re-mobilize construction labour, construction materials and equipment,” said RK Arora, President of NAREDCO-UP.
Because of this, the developers have asked the deadline to get zero period benefit should be extended.
According to property consultant Anarock, there are altogether over 6.1 lakh affordable units under construction across the top 7 cities, of which NCR and MMR alone account for nearly 59% – or 3.59 lakh units. NCR has the maximum under-construction affordable housing stock with more than 1.87 lakh units. Unsold stock in this budget category is nearly 64,430 units in NCR, a majority of which is in Noida.
In Q1’20, Noida witnessed a 9% increase in new launches on a Q-o-Q basis. Whereas, sales decreased by 26% to 1,177 units during the same period, according to PropEquity, a realestate analytic platform.
Also, according to the developers, interest on land premium is charged at 12% + 3% (compounding half yearly) which effectively comes to 22 to 24%.
“Kindly issue instructions to authorities to charge interest at MCLR-1%,” the developer body has said in the letter.