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.
