Tag Archives: Greater Noida West

Noida Extension weathered many challenges

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Bottom Line: No other property market or sub-city has weathered as many challenges as Noida Extension, now rechristened as Greater Noida West.

Noida Extension, Greater Noida Property, Greater Noida West, Delhi-NCR Property, Indian real estate market, India property market, Real estate news portal, real estate website, Real estate news in India, Track2Media Research, Track2Realty, NRI property market, Investment in Delhi-NCRStarting as an affordable destination, derailed by land acquisition litigations, regained with price escalation and higher FSI & density norms, and finally scaling up from affordable to premium housing, no other property market in India has weathered that many challenges and constant image makeover as Noida Extension. It has now been rechristened as Greater Noida West.

Largely viewed in the collective consciousness as the most affordable market of Delhi-NCR, probably the authorities did no justice to this market by positioning it as yet another micro market to supplement Noida and Greater Noida. More than the controversies and the litigations, the positioning of the market has been a challenge.

It was created as an altogether different micro market than Noida and Greater Noida but was never conceptualized as a sub-city, despite of the master plan having provisions of everything that a sub-city would need, including office spaces, IT spaces, retail, entertainment hubs, educational institutions and other necessary social infrastructure.

Post the controversies and clearances by the Supreme Court of India that ordered extra compensation to the farmers and the authorities, in turn, granting additional FSI (from 2.75 to 3.5) to the builders, the Noida Extension is still looking for an identity. This is despite the fact that the new launches in this part of the world, of late, are as much in the premium category as in the affordable segment.

The authorities, on their part, rechristened the name of the market from Noida Extension to Greater Noida West (that sounds like Meadows West of Texas). However, the market is still looking for an identity of a sub-city where even the official pin code has not been allotted thus far.

The question today is that with the kind of supply that is in the pipeline will Noida Extension grow out of affordable tag. Vineet Relia, Managing Director of SARE Homes feels that with upscale projects coming up in some areas of Greater Noida West and with the Stamp Duty in UP having been hiked from five to seven per cent, effective 1 April 2016, flats in Greater Noida West are bound to cost more. In such cases, the affordable tag will not be applicable to all projects in this region.

“Earlier, the positive verdict from the National Green Tribunal on the Okhla Bird Sanctuary issue was a big boost for developers and flat-owners in the region. But since properties in this region are on lease, transfer fees and lease rent also come into play, pushing up the total cost of the unit. Now, with the two per cent hike in Stamp Duty, there will be a further increase in property prices and that will impact sentiment negatively, putting a question mark on the affordable tag,” says Relia

Nikhil Hawelia, Managing Director of Hawelia Group points out that Greater Noida West is in line to deliver more than fifty thousand flats in the next three quarters and complementing Noida it will remain to be a destination for lower and middle income group. Majority of the apartment sizes in this region ranges from 700 square feet to 1500 square feet, whereas other adjacent sectors of Noida have 1200 square feet to 2500 square feet flats.

“Due to small ticket size and maintaining the equilibrium with Noida residential market, Greater Noida West will be considered as an affordable region for another couple of years. Initially the emphasis is always on meeting the basic needs and all construction and development works were majorly concentrated in fulfilling the required demand,” says Hawelia.

Analysts point out that with time and growth and settlement of MNCs, corporate houses and big scale industries in the next few years, a sense of high-end luxury residential as well as commercial establishments would be inevitable. After second phase of delivery, which is another four to five years down the line, this region will surely have great potential to become the next preferred destination for premium projects.

However, while Noida Extension is showing all signs to organically grow premium and shed the tag of affordable destination, the market is still looking for its distinct positioning as a sub-city.

 

Habitation challenges galore in Noida Extension

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Noida Extension, Greater Noida Property, Greater Noida West, Delhi-NCR Property, Indian real estate market, India property market, Real estate news portal, real estate website, Real estate news in India, Track2Media Research, Track2Realty, NRI property market, Investment in Delhi-NCRNo other residential micro market of India has arguably weathered as many challenges and controversies as Noida Extension. Its inception as a separate zone, other than Noida & Greater Noida, did lend credence to conspiracy theories against the farmers that culminated into land acquisition litigation. Since then it has been a sordid saga of project delivery uncertainties and homebuyers endless wait; not to speak of the additional charges levied as against the compensation amount hiked to the farmers.

Yet, Noida Extension is getting ready to be home to thousands by the end of this year. The well-planned region otherwise, the micro market still stands as a ‘no man’s land’ with not even an official pin code being given to the place.

From the standpoint of urban planning, it has the higher density of population than Noida or Greater Noida with around three lakh apartments under construction. The basic infrastructure is still very much a challenge and officially it is work in progress in Noida Extension. While the Greater Noida Authority (GNIDA) has laid power cables and built substations, the road network is still in a bad shape for habitation of nearly one lakh people very soon. There is only one school ready and the government officials claim land has been allotted for a few more as well as a hospital.

The GNIDA officials say water supply provisions for individual plot owners are in place, but for group housing societies, it is a builder’s responsibility. The industry body CREDAI does not seem to think it is their responsibility to take up the matter with the authorities. As a matter of fact, the CREDAI President Geetamber Anand even refused to speak on whether Noida Extension can be called habitation-ready.

The market is nevertheless going to be the address of those middle class who could not afford in any other part of Delhi-NCR. Most of the developers who started the projects early in the year 2010 are closer to delivery and many of them would offer the possession by early 2016. So, in all nearly 50000 to 60000 flats would be ready for delivery by that time.

In terms of its appreciation potential, the average salaried-middle class homebuyers got a shock in July this year, when the property consultant JLL in a report declared Noida Extension as high-risk zone and advised the homebuyers to stay away. The report had said that with around 2 lakh apartments coming up the market is not likely to appreciate. It seems now that Noida Extension is getting ready to deliver thousand of apartments, the outlook towards the market is changing.

Santhosh Kumar, CEO – Operations & International Director, JLL India says  that with the infrastructure developments happening in the region, and with better connectivity to Delhi and Gurgaon, Noida Extension is ready for habitation. With the rate cuts and cheaper housing loans, demand is going to be high in that region. Both the primary and luxury residential markets segments have high potential.

“At current estimates, around 21,000 units should be delivered by the end of the year. However, some projects may still miss the deadline. At a rough estimate, around 15-18 thousand units are likely to be delivered. The infrastructural developments in Noida, Greater Noida and Noida Extension are well planned, with road and metro corridors. Hence, there will not be much impact as far as the load on infrastructure is concerned,” says Kumar.

Nikhil Hawelia, Managing Director of Hawelia Group that is getting ready to deliver a project in Noida Extension early next year is bullish on the market. According to him, going with the present situation a number of developers has already started giving possession of residential units in different projects in Noida Extension. The region is on the fast track of progress. Great connectivity & infrastructure with required facilities have made this region a leading real estate market today. Already near to 300-400 families have moved and living here. At the same time the other related developments which are necessary for a comfortable and hassle free living are taking shape speedily.

“With the kind of development taking place in this region, it is undoubtedly all set to become an ideal destination for habitation by addressing all the required necessary facilities for a community living. Currently, basic daily needs are being addressed but it will take another 10-12 months for major facilities to be fully functional in the area. As of now, receiving a courier to your home address is a challenge in the existing scenario. Local transport facilities from authorities and state government are still not functional. Installation of a landline phone connection or internet facilities which are the necessity of today’s modern habitable living are still the concerns,” admits Hawelia.

Urban planning fundamentals suggest that for a city to grow as a residential or commercial hub and to lure its potential customers, there is the need to set in place its basic infrastructure and facilities which are the factors considered pivotal in decision making. Can Noida Extension be termed as investment magnet from that given benchmark? The opinion is divided but on paper there is definitely detailed planning of infrastructure, including the road connectivity network, sewage & sanitation, electrical, etc.

The developers active in the market assert that with a lot of developments across various sectors, and metro connectivity to all key destinations, this region will not add up to the load on infrastructure. They maintain it will become one of the fastest developing sub-cities in the NCR. Also in line to the residential developments, the required commercial developments, educational institutes, health & medical facilities and office & IT spaces are already part of the planning by GNIDA.

On the eve of festive season, as many of the homebuyers were evaluating their work-life balance post shifting to the new homes in Noida Extension, there came another blow to dampen the spirit. The Allahabad High Court ordered the demolition of numerous realty projects launched by various real estate developers including Supertech, Amrapali and Jagat Taran. The demolition of the high-rise building projects located in the Patwari Village of Greater Noida came in light of the fact that they are situated nearby graveyard areas, which according to the High Court, is illegal and therefore stand to be demolished accordingly.

The final vote of confidence, if not verdict, on Noida Extension is yet to come. However, within the built environment of Indian real estate everyone continues to whisper that Noida Extension has been a thriller micro market that has scripted many thickened plots.