Realty prices set to go north in G’gram, NCR

Pradeep Sharma
Tribune News Service
Chandigarh, February 15

Property prices are set to increase in the National Capital Region (NCR), particularly Gurugram. With the Gurugram Bench of the Haryana Real Estate  Regulatory Authority imposing a processing fee of Rs 10 per square metre  on all projects,  developers are likely to increase property prices in the NCR, which includes Gurugram.

“The processing  fee will be Rs 10 per square metre on gross area of plotted colony. In case of group housing, commercial and information technology projects, the processing fee will be on the proposed floor area ratio. The processing fee is non-refundable and liable to be forfeited  in case of rejection or withdrawal of application  for registration,” read  a notification issued by KK Khandelwal, chairman of the Gurugram Bench.

Real estate observers said since the realty market was already passing through a recessionary phase, builders and developers would be forced to pass on the processing fee to investors and end users, resulting in increase in property prices.

“Buyers will have to shell out more for buying property on account of rise in cost of construction and imposition of processing fee for registration of real estate projects. The order has been issued by the Gurugram Bench, which has jurisdiction over Gurugram only, but it will have a cascading effect on property prices in the NCR and the rest of Haryana,” said AK Sharma, a real estate consultant.

Developers to pay Rs 40,470 per acre

For plotted colonies, the developers will have to pay an amount of Rs 40,470 per acre as the processing fee. However, in the  group housing, commercial and information technology projects, the processing fee will be determined on the basis of the  actual floor area ratio used for the construction.