Flats in Noida

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