Builders with housing projects in Noida Extension (Greater Noida West) breathed a huge sigh of relief on Thursday. Caught up in uncertainty as a result of the legal action by farmers, construction work had all but stopped in these areas since 2011. It had dovetailed into the overall slump in the realty market, spelling gloom all around.
But an elated realty industry felt investor confidence in the twin cities would now be restored and the supply windfall, as a result of 3 lakh planned flats being freed of legal tangles, would contribute to the growth of the market by adding to options. Real estate development is under way in 14 of the 65 villages, with 75 builders involved in projects. About 500 flats have already been handed over to buyers.
Builders who have handed over flats already, like Gaursons and Supertech, have charged an additional amount to cover for what they had to pay the Greater Noida Industrial Development Authority (GNIDA) after the Allahabad high ruled in favour of enhanced compensation to the tune of 64.7%. For buyers who have already got possession, the charges were added to their settlement tabs. Buyers who are yet to get possession will have to pay the extra tab at the time of possession.
A homebuyers' association, though, said it would protest against paying extra charges, arguing at the time of booking, builders were contractually bound not to levy additional charges. "It is wrong to pass on extra charges to buyers, as land acquisition is GNIDA's responsibility. We've urged the apex court to clarify who should bear the extra costs," said Shweta Bharti, general secretary of Noida Extension Flat Owners Welfare Association.
The builder lobby, though, thinks the Supreme Court's green signal bodes well for Noida Extension as a realty destination. "This is good news for investors. The area is developing fast and will become a prime destination for NCR homebuyers soon. We expect more buyer interest in Noida Extension over the next few months," said Manoj Gaur, president of the NCR chapter of Credai.
"The going rate of apartments in Noida Extension is between Rs 4,500 and Rs 5,000 per sq ft. But now that we are going to open our inventory and develop newer projects, new buyers will have to pay higher prices. We're definitely looking at price hikes," Gaur added.
"This is a definite reversal of the low mood. This augurs well for realty in Greater Noida. For both buyers who have invested already, and those who are planning to buy, the area has now become premiere," said Supertech MD R K Arora.