For quite some time now the GDA properties have failed to attract buyers and thus the Ghaziabad Development Authority (GDA) has come up with an idea of reducing the supervisory and administrative charges on properties that it offers for sale as a way to attract buyers.
Kanchan Verma, vice-chairperson, GDA, said that a committee was formed under the GDA secretary to find the reasons behind why the properties were not finding any buyers in the auctions. It was found out that in comparison with private buyers, GDA imposes supervisory and administrative charges that together amount to 30% of the total cost of the property. Thus to attract the buyers, the GDA is deciding whether to completely forgo the supervisory or administrative charges or to bring it down to 15% of the total cost of the property.
GDA has housing units in Indirapuram, Swarnjayantipuram, Vaishali, Nandigram, Indraprasth and Madhuban Bapudham. In these areas, if the cost of a property that is being sold is Rs 30 lakh which also includes the supervisory and administrative charges, the same property will be sold by a private developer at Rs 25 lakh. Cumulatively, GDA properties worth about Rs 500 crore have gone unsold in auctions.
Verma also confirmed that reliefs are being proposed by GDA to the buyers on the corner shops on levels other than the ground floor. Earlier GDA is to charge 10% of the total cost for the corner shops due to their advantages. But now the committee suggested that though the corner shops on the ground floor have many advantages, shops on the first and second floor do not and hence that charge should be abolished. There are at least 60 such shops in Indirapuram and Raj Nagar District Centre which have gone unsold.
Another suggestion put forth by the committee, which the GDA is also planning to implement, is making land rates in Indirapuram and Vaishali uniform. The rates in these areas are already so high, and thus the new rates of these buildings will be decided based on the compatibility of the market rates. The decision is to be taken by GDA’s board meeting.
The rethink on rates reflected earlier this week in the Noida administration’s decision to slash circle rates for commercial properties by more than 21%, citing stagnation in sales.