While the commercial absorption of space in Delhi NCR increased by 22% in 2013, Noida’s realty market did not see any appreciable growth. With the recent execution of DDA’s policy to implement its Land Pool Policy, about 70,000 acres of land is expected to get vacant in Delhi itself. This will further impend the real estate growth in Noida and Gurgaon. The market has been sluggish in Noida particularly, where builders are busy launching new projects at a very rapid pace. The rate of absorption of residential market, however, has not bee able to catch the pace.
Noida properties witnessed another setback when the land allotment rates were appreciated in Greater Noida. A hike of about 10% shall be applicable on all types of land allotted. This appreciation is more than that last year’s 8.5%. This hike, as announced by GNIDA(Greater Noida Industrial Development Authority), shall be applicable in the coming April. The authority has been at loggerheads with the land farmers to whom it shall have to pay more compensation.
Plots that are meant to be used as residential properties in Greater Noida have undergone appreciation. These prices are expected to see a further boost after Lok Sabha Elections that are to take place in 2014. In light of political uncertainties, the properties in Noida are expected to see a steep rise. As the investors as well as buyers are wary of the new policies that shall come up after election, they have been postponing their plans. Even the investors with big deals have stopped taking any genuine interest in rolling out money at present. They need to wait until after new rules come into vogue.
Yet another problem that Noida real estate is encountering is the tight liquidity of properties. With low absorption rate, the developers and builders are facing problems selling off their projects. With the liquidity rules made all the more stringent by Reserve Bank of India, the problem faced by them has increased manifold. The flow of funds to Noida’s realty sector has witnessed a decline of about 25%, thus hitting its economy hard.
Noida Extension Flat Owners Welfare Association(NEFOWA) is facing problem in light of the recent announcement by Allahabad High Court to return land to the real owners, i.e. farmers. The current owners of flats are in dilemma as they have already purchased the properties. These matter are of serious concern and require immediate attention on part of authorities.