Massive Lease Rent Hike Announced for Noida

The Greater Noida Authority has announced a substantial increase in the one-time lease rent for residential and other properties, effective from September 15. The decision, made during the board meeting on June 15, will see the one-time lease rent rise to 15 times the annual lease rent for all property categories, a significant adjustment from the current rates.

As it stands, residential and group housing properties are subject to an annual lease rent set at 1% of the total premium, with a one-time payment rate of 11% of the total premium. For industrial, commercial, IT, and institutional properties, the annual lease rent is 2.5%, while the one-time payment rate is 27.5% of the total premium. Following the board’s resolution, new allotments made after June 15 will be subject to the increased rate. Existing allotments that have already settled their payments will not be impacted by the new rates.

To illustrate, for a residential property with a total premium of ₹10 lakh, the current one-time lease rent is ₹1.1 lakh. Post-September 15, this will escalate to ₹1.5 lakh, reflecting the new 15% rate. Similarly, an industrial property with the same total premium currently incurs a one-time lease rent of ₹2.75 lakh. This amount will rise to ₹3.75 lakh after the deadline. The Greater Noida Authority, which collects over ₹400 crore annually from lease rents, utilises these funds for key development initiatives such as land acquisition, infrastructure enhancement, and city maintenance. The CEO of the Greater Noida Authority has urged stakeholders to take advantage of the existing rates before the increase takes effect, highlighting that the revenue generated is crucial for ongoing and future city development projects.