Several New Projects in Noida Greenlighted

Homebuyers who had purchased some new projects in Noida may soon have reason to cheer. Some such projects had hit a snag as property in Noida which had been cleared for development and on which work had begun had hit a roadblock when the sale of land on which the developments were to be built had been contested by farmers from whom the land had been purchased. The prospective of the settlement of such claims by famers who have been offered a higher share as well as a share of some of the land under development is likely to lead to respite not just for homebuyers but for builders in Noida too.

Many of such developments had flats in Noida whose possession had been delayed by up to 5 years causing those who had opted to purchase such flats, many of whom had paid nearly 70% of the due amount, to be in an unsteady lurch expecting that the money they had paid would be paid back. Until recently the expected outcome was that buyers who had purchased such flats in Noida would be paid back the full sum by developers, this would have resulted in a loss to concerned builders in Noida of the entire capital invested in the project thus far. The recent settlement from farmers who shall now receive a greater share from the land leased to builders and developers in Noida has greenlighted numerous projects in Noida which had thus far been stalled.

The legal acquisition of land for the purposes of development can often be a cumbersome process and at times after the sale or lease of land for the purposes of construction of residential property in Noida or at any other city, there may still be claims which can be made by those from whom the real estate was bought. Such ambiguity in the process of land transfer and land ownership is cause of great concern not only to homebuyers but also to the parties who sell the, in many cases farmers, many of whom may have poor clarity regarding their rights as sells as well their ownership rights and rights which further clarify their claim to any flats in Noida being constructed at land bought from them.

Perhaps the only viable solution to such obfuscation in the buying and selling of land is a bureaucracy which is more empowered and supported with a greater technology infrastructure with land records and transfer certificates that are digitalized. Perhaps an even more efficient methodology of securing land may be to simply upload the details of land ownership along with the boundary of the land on the cloud where it shall remain secure and unalterable until the appropriate transaction relating to the land occurs. The fact that even today residential projects in Noida are purview to such litigations which result in financial difficulties to builders in Noida as well as to those have purchased the flats at such developments indicates the need to digitalize all land records all across the country to further prevent the occurrences of similar matters.  

Lower Commercial Space Demand Augurs Poorly for Property in Noida

 Property in Noida may be in for trouble ahead if we gauge the success of the cities commercial space sector and demand for the same. Recently some large commercial blocks of land were attempted to be auctioned by the Noida government but to no avail, none of the over one dozen blocks were successfully sold. The blocks which were attempted to be sold did not even sell at the reserve price, a great disappointment not only for business in Noida but also for flats in Noida. When there is lower demand for commercial spaces in a city, especially when the concerned property being sold is unable to be sold at even reserve prices it means that there is likely a recession in not only the economy of the city but also in the real estate market of the city as well.

The lack of demand for commercial property in Noida is likely to impact the residential projects in Noida as well as prices for the same are likely to appreciate at a lower rate or perhaps even drop due to lower demand for real estate in Noida. If there is likely a recession in Noida as has been widely stated by many economists and experts it is bad news for upcoming projects in Noida as the presence of fewer employers or employers who do not hire in increasing numbers are likely to lead to lower demand for high quality housing and lead to falling prices for new projects in Noida as well. Some of the best residential projects in Noida may also be valued lower than they have been for years if not decades, a city with little demand for commercial property means new businesses are unwilling to invest in a certain economy even at lower prices. This could be because businesses do not see a worthwhile investment opportunity in the regional micro market or consider that there is unlikely to be sufficient demand for high quality and exclusive goods in the market.

If the above symptoms are a sufficient indicator then over time no one with property in Noida can be said to be safe, whether it is someone who owns luxury apartments in Noida or a more modest home. In a downturn almost no one is safe and the prices of luxury homes and larger 4 BHK flats in Noida too may drop in value gradually over a number of years. Builders in Noida too are likely to feel the pinch of a slower property market and markets surrounding Noida too may be affected by the lack of business confidence in Noida. It is possible that apartments in Noida extension will be adversely affected by the ripples of lower demand for commercial property, even many top builders in Noida may suffer due to a fewer demand for existing inventory as well as lower demand for new flats in Noida.

Today as economies are more and more interlinked what happens in one part of the country is likely to reverberate in another part of the country. How a lower demand for property in Noida is likely to be felt across the NCR is as yet unsure? Already as Noida is considered a far more budget locality in the NCR than other regions, lower demand may cement its position as a locality for budget homes even further.