Even as it continues to be on a growth trajectory, myriad problems haunt Noida Extension of Greater Noida (west) as it is known. Will it get bogged down or will it be able to keep its golden promise of being realty hotspot, only time well tell,
That Noida Extension or Greater Noida (west) has big problems is just stating the obvious. Land acquisition, farmers’ issues, project delays, skyrocketing property prices are just some of them. But has the location been a ble to keep its date with posterity by delivering on its promises of much better future prospects and enhanced lifestyle? Experts are a divided lot.
Some believe that the realty space in the locality is increasingly becoming popular and progressively getting more preference because of its budget housing offerings. Also there is a huge premium on the situational advantage due to its proximity to the established locations of Noida and NH 24. On the other hand, many say the location will continue to stay in the red for at least some more time due to one reason or the other
“The pricing of this region is really attractive and is beyond comparison with that offered in the National Capital Region. It is definitely suggested to the people who missed the opportunity of the township projects on the National Highway and the frequent travellers of the neighbouring cities of Meerut, Modi Nagar and Hapur etc. The projects in the region have seen an average appreciation of approximately 1 2-1 6 per cent per annum,” says Ashim Bhanja Chowdhury, head (Research & Analytics), BOP.
Disagreeing, Ankur Dhawan, vice-president of PropTiger.com Data Labs, says: “New launches have dried up this year with only eight new projects launched compared to more than 200 launches in 2013. With some exciting and attractive new launches in the centre of Noida and along the Yamuna Expressway, Noida Extension has lost its shine. With more than 50,000 units under construction, Noida Extension continues to be a major part of the Noida real estate market, yet it will stay under the shadow for the coming few months.”
“The continued farmer unrest over land acquisition and unethical practices of many developers in Noida Extension has reduced buyer’s interest for the area,” he adds.
With land acquisition issues posing a major headache, recent court orders have increased the pall of gloom. In fresh trouble for buyers and developers, the Allahabad High Court in February had ordered the Greater Noida Authority to return the land acquired from villagers of Patwari to the original owners with in two months.
The court ruling has affected interests of over 12 builders and thousands of buyers as 26,000 flats were under construction on the disputed land measuring 5.89 hectares.
But government babus are quite hopeful that this farmers’ issue is trivial and will be resolved soon. “Maxi mum farmers accepted 6 4 per cent extra com pensation following the HC order. Though there are some who were not satisfied with the compensation and have moved Supreme Court, we are hopeful that soon the matter would be resolved, “said Rama Raman, chief executive officer (CEO), Noida Extension
Industry sources say that while land acquisitions problems have delayed projects, especially in Noida Extension, the real problem lies elsewhere.
“Builders launch a project and based on its prime position, get buyers in droves. But instead of using this money to complete that project, they go on an expansion spree. As of today, most big names have a plethora of projects but hardly any of them are ready,” said a Noidabased property dealer who requested not to be named.
Besides the land acquisition row, there is yet another big issue – delayed possession, which has forced lakhs of middle-class families to keep their fingers crossed. Having booked homes in the region and deadlines expired, they are yet to get their possession. Industry estimates suggest that almost half of the four lakh residential units planned in Ghaziabad, Noida and Greater Noida (which includes Noida Extension) are delayed. Among the projects under construction, over 40 percent are running behind schedule.
“The problem of delayed possession is really serious. Most of the projects launched in the last four-five years or even before that have still not been delivered to buyers. Because of this end-users are losing faith in buil ders’ ability to deliver on time and the latter’s credentials have gone down drastically. This is one of the reasons why real estate is at a low point, “said Santhosh Kumar, CEO (operations) of Jones Lang LaSalle (JLL) .
According to a JLL study, at present, a total of 2,3 1,956 residential units are under construction with 1.1 lakh in Noida (city and Expressway); 94,500 in Noida Extension and 24,600 in Greater Noida (including Yamuna Expressway). “Of these 2.3 lakhs, 95,859 or a whopping 41 percent are running behind schedule, with the maximum delay being four years, “adds Kumar.
Despite the odds faced by the region, developers are still hopeful that they will encash it with their new and upcoming launches. According to PropTiger.com Data Labs, a realty research firm and brokering house, there are over 22 projects that are under construction and many new developers are eying the region to step up their business in the region in the few months down the line.
“The real estate market in Noida Extension is experiencing an upward trend. Unlike before, the buyers are not hesitating before investing their hard earned money in the upcoming properties of this area and there are many reasons behind this positive response. Some of the key reasons are reasonable pricing without compromising on the facilities and other features, proposed Metro connectivity, existence of the finest reality brands of Delhi/NCR,” says Vineet Relia, CEO, Sare Homes.
Says Suninder Sandha, director, Horizon Concept: “Unlike before, the buyers are not hesitating at all before investing their hard earned money in the upcoming properties of this area and there are many reasons behind this positive response.”
The residential real estate in Noida Extension has been driven by the rising middle class which is the backbone of the current socio economic development of India. The NCR Planning Board (NCRPB) has already approved Greater Noida’s Master Plan 202 1 which has brought stability and growth to a previously largely speculative market “.
Projects have been completed without compromising on the quality despite the delay due to unforeseen circumstance of land compensation. The builder bodies are ready to cater to a projected population of 10 lakh. As per an estimate, over 2.5 lakh built houses would be delivered in the next three-four years. Infrastructure in Noida Extension has been given due importance and that, therefore, has added to the appreciation in demand,” Adds Am it Modi, whole time director, ABA Corp.
What Developers Say?
NOIDA EXTENSION : READY TO BARGAIN?
There i s a common question in every buyer’s mind: Is this the right time to invest in real estate in Noida Extension or should one wait as prices may fall because of a possible oversupply situation? Many would vouch for Noida Extension as an advisable option among all areas in NCR wherein one ca n get a good bargain.
Experts a re also of the view that a cut-rate price is in the offing while developers disagree with the fact and say there may not be a fall in prices.
“With piling up of inventory in Noida Extension, developers are ready to offer units at a discounted price. Additionally, Noida Extension has a multitude of first time developers who are willing to bargain on prices to attract buyers,” says Dhawan of PropTiger.com Data Labs.
Says Vipul Gupta, managing director, Neobrix: “Noida Extension is a market which has seen a boom from its very launch and as far as price correction is concerned, real estate always appreciates. So, price correction is unlikely to happen in the near future. It is a budding market and buyers are coming at will. The sales have been good and the infrastructure is getting developed at a rapid pace. No doubt, this region is the best deal of NCR.”
Adds Mahi pal Singh Raghav, chairman, M M R Group, “In a locality like Noida Extension where developers are coming out with some of their best projects, price correction might not happen. There has been a normal and gradual price rise happening in the region which will only continue as development takes place.”