Whereas governments in other suburbs of the NCR may be taking
steps, either intentionally or unintentionally, to bolster real estate in their
respective region, it seems that authorities in Noida may be making real estate in Noida more expensive
for buyers and may eventually lead Noida to lose some of its appeal as an
affordable locality to own real estate in the NCR. Recent decisions by
authorities in Noida to hike the land allotment rate as well as stamp duty is
expected to hurt market sentiments perhaps dangerously enough to shift
investment intended towards property
in Noida to other regions of the National Capital Region.
Such decisions, in a part of the capital region which is largely
considered a magnate for first time homebuyers seeking an affordable first
home, hurts the sentiment that property
in Noida is more promising when catering to the masses of the NCR.
Whereas property in New Delhi is well out reach of many in the capital and
owning a home in the other promising suburb of the NCR in Haryana too has
become costly, Noida presented itself as a great alternative to middle class
households than regions with much more extravagantly priced homes.
Newcomers to the NCR would often be chided that settling down in
Delhi is no joke, yet settling down and purchasing property in residential projects in Noida was
largely considered less daunting and this suburb seemed to welcome migrants and
first time homebuyers with grace and affability. The recent decisions by
concerned authorities may harm the current hallowed status Noida and its
surroundings regions enjoy as providing affordable homes in a region of the
country where prices of real estate are rapidly becoming unaffordable to
newcomers.
The impact of the decision is likely to affect the price of flats in Noida as well as add
additional burdens on builders in Noida
who may now have to concern themselves with higher land allotment rates in
addition to already higher input costs and higher costs for machinery and
equipment as well. Real
estate developers in Noida
are almost certain to pass on such additional costs to the consumer making real estate in Noida more expensive to
end users seeking property in the suburb.
As opposed to many other parts of the capital region, Noida caters
to end users and Greater Noida in particular is already well known as a
preferred location for homebuyers seeking inexpensive lodgings. The decision to
increase the stamp duty in Noida by two percent is likely to prove pernicious
to residents of the city many of whom are paying a month EMI for upcoming projects in Noida the
completion of which has possibly be postponed several times while at the same
time these homebuyers are paying rent for their current home. By increasing the
stamp duty by 2 percent such a homebuyer has to bear an addition burden in
addition to many of the others he or she has to somehow accommodate for.
Such significant policy changes at a time when builders are already coping with
additional challenges such as delays in the completion of a large number of residential
projects in Noida shall likely harm real estate in the region. If
the concerned government authority deems such changes necessarily for the
fulfillment of a new mandate, perhaps such measures may be introduced at a more
opportune time when there may not be so many unalterable additional pressures
upon builders in Noida.
