The opening of the Yamuna Expressway and the approval of the Greater Noida Master plan, paving the way for the resumption of construction at Noida Extension, will go a long way in improving the investors sentiments in Noida, Greater Noida and Yamuna Expressway.
It was a great week for homebuyers in Noida Extension. The NCR Planning Board has finally given its approval to the Greater Noida Master Plan, which includes the development of Noida Extension.
Before some time, the Akhilesh Yadav government in Uttar Pradesh opened the 165km-long Yamuna Expressway, between Greater Noida and Agra, to the public.
These two decisions the opening of the Yamuna Expressway and the approval of the Greater Noida Master plan, paving the way for the resumption of construction at Noida Extension will go a long way in improving the investors sentiments in Noida, Greater Noida and Yamuna Expressway.
The most heartening aspect of it all is that the developers of Noida Extension, where around 2, 00,000 apartments and houses are likely to be developed in the next five years, are sticking to their earlier decision to absorb the increase in cost due to additional payments that they made to the authority and not pass it on to the existing buyers.
Before the land-acquisition agitation started, developers had already begun the construction of a large number of apartments, 50,000 of which have already been sold. As the developers had positioned the entire developments in Noida Extension in the affordable housing segment, they sold apartments in 2009 and 2010 in the range of Rs 1,800-2,200 per sq feet.
But after the courts cancelled the acquisition of land in the area, the Greater Noida Industrial Development Authority (GNIDA) renegotiated with the farmers and paid them additional compensation to sort out the issues. At the same time, the authority passed on this burden of additional payments upon the builders.
As a substantial number of apartments have already been sold, many developers, finding it difficult to recover the additional cost from existing buyer, have decided to increase the rates for new buyers. In addition, developers demanded that they be allowed to construct additional floors to absorb the extra cost, which they had to bear due to no fault of theirs.
The old customers are unlikely to be affected as the new rates won’t be imposed on them. To ensure this, we have requested GNIDA to increase the FAR of the region, R K Arora, the CMD of Supertech, said.
The authority has acceded to this but for a price. At present, builders are allowed to build 2.75 times the ground area, which the developers have demanded be increased to 3.5.
We have requested the authority to permit the extra FAR without any cost, Arora said. If the FAR is increased, developers can build extra flats, which will help them absorb the cost of additional payments that they made to the authority.
Manoj Gaur, the president of Credai, Western UP Chapter, says: It would give a boost to the economic activity in the area, apart from giving joy to the buyers and investors. We would like to thank the NCR Planning Board and other authorities concerned for having kept in mind the interest of the people.
It is now expected that the construction will resume in the next 15 days. Once the construction resumes, Noida Extension will regain its place as a destination for affordable homes. And with a provision for transport projects in the Master Plan, buyers will move into a place that matches their dreams, Gaur says.
Anshul Jain, the chief executive officer of DTZ India, says: There is no doubt that there will be an upward pressure on pricing due to the increase in the compensation to the farmers and the rising input costs. However, the region will still be much more affordable than Noida, Gurgaon and Greater Noida. With approvals in place, the demand will certainly increase due to the lower cost of houses, providing opportunity for both the investors and end users.
The USP of Noida Extension has been the affordable housing theme. The region saw heightened activity between 2009 and 2010 due to the launch of residential projects with an average per square feet rate of Rs 2,000-2200.At this cost, the dream of owning a home seemed a reality for most of the potential homebuyers and a lucrative investment opportunity for the investors, Anshul said.
R K Arora of Supertech says: This is a tremendous gain for all the homebuyers and other stakeholders in Noida Extension. Homebuyers were burdened with loan repayments and faced uncertainty about the completion of their projects; now they are relieved as we put an end to that controversy.