Noida is Booming Again With Increase in Demand of Realty Market

The real estate market of Noida saw a big uptake since the government minimized the eco-sensitive zone in and around the Okhla bird sanctuary. As per the reports the Residential property in Noida came down by 4.6% since the National Green Tribunal ordered a stop to construction. Since the launch of the project in 2011, the rates of property in Noida appreciated by 60%

The sale of property in Noida fell down drastically in the last two years but the experts believe that the market will recover as soon as the projects are completed. Developers believe that the location will see more residential sales along with the office and retail spaces leasing in the coming months. There is an expectation of residential buyers to pick up demand as the real estate market is opening up again in the area. With reducing interest rates and the focus of the government on the infrastructural developments might bring along food news for the Real Estate Sector in Noida.

The uncertainty on the eco-sensitive zone has made the home buyers wait for possession of their apartments and many possessions on the anvil by the year end. This move will definitely see a rise in the registration of property in Noida which has declined by nearly 30%, year after year.

Many home buyers received a breather when the government approved the reduction of the eco-sensitive area around the Okhla bird sanctuary. There were around 50 residential projects that were impacted by about 50,000 home buyers due to the pending decision of the government.

The environment ministry's bill notification that was issued last year, was cleared by the government, which stated that the eco-sensitive zone would be measured up to 100 meters from the eastern, western and southern borders and up to 1.27 km from the northern borderline of the sanctuary.

The projects were trapped after a tribunal command ordering a stop in the construction in the radius of 10 km from the Okhla bird sanctuary and preventing the authorities from allotting completion certificates within the eco-sensitive zone till the approval from the National Board of Wildlife was found. The tribunal also focused the Centre to define the eco-sensitive zone around the sanctuary after seeing fresh applications from Uttar Pradesh, Haryana and Delhi. After the issue of the notification by the government, the home buyers outside the zonal area will get occupancy certificated for their apartments. There are many renowned developers whose projects were affected by the tribunal orders.

Irrespective of these government orders, Property in Noida is definitely going to get more demands of residential and commercial projects which are said to be affordable and has easy and convenient connectivity to Delhi NCR. Thus, Noida is said to be back with a bang with world class infrastructure to cater to the buyers and investors.

Hike in The Cost of Residential Property in Noida?

A setback for the buyers at Yamuna Bank, Noida and Greater Noida, the Residential Property is all set to cost more and of course, this burden will come on the pockets of the customers. The implementation of increased stamp duty on registration of units from 5 to 7 percent has been approved by the governor recently, and this will be applicable from the beginning from the financial year i.e. April 1st, 2016.

Experts believe that depending on the size of the purchase units; there will be an increased burden of around Rs. 50,000 – Rs. 2, 00,000 completely on the customers who are willingly investing in Residential Property in Noida, Yamuna Expressway and Greater Noida. They believe that these will undoubtedly affect the demand for property that recently started picking up pace.

After the National Green Tribunal (NGT) verdict last year, it bought positivity and begun to bring customers back in these areas. But, after the governor’s decision, the buyers and investors are morose and are protesting with the developers’ fraternity. Even the developers believe that this move of increasing the stamp duty will never satisfy the buyers, and they will be forced to pay extra money to receive the ownership of their units. This move is of course not for the buyers, and all the efforts by the NGT verdict which bought back the buyers to the Properties in Noida and nearby regions will now go in vain. 

It is to be taken into account that almost one lakh units are registered each year from Noida, Greater Noida and Yamuna Bank which brings along heavy amount to the authorities. The buyers have to bear not only the increased stamp duty but also the axe of transfer fees and lease rents as the properties in these areas are held on lease. Along with this, the transfer charges are also high which is added to the lease rent. It comes down to a total of 1-2.5% of the total cost of the unit. It, however, varies with different Properties in Noida, Yamuna Bank and Greater Noida. Adding to this is the hiked property prices which of course has to be paid by the buyer.

Altogether the problems of Buying Property in Noida, and nearby regions is high, and this will affect the demand for Properties in Noida, Yamuna Bank and Greater Noida. It is being expected that this decision of increased stamp duty will reduce the demand for property in the future.