What went wrong

An ac­count of the Noida Ex­ten­sion story thus far and its reper­cus­sions on com­mer­cial prop­erty rates

HT Estates - - NEWS - San­thosh Ku­mar

The Noida Ex­ten­sion land acquisition fra­cas was all about the au­thor­i­ties ac­quir­ing land at con­sid­er­ably low prices from farmers and al­lot­ing them to de­vel­op­ers and also chang­ing the planned use pat­tern from in­dus­trial to res­i­den­tial. Farmers re­volted and were able to gain wide sup­port from dif­fer­ent quar­ters.

Af­ter mas­sive ag­i­ta­tions and high court or­ders, the au­thor­i­ties gave the ver­dict that the af­fected farmers were el­i­gi­ble for com­pen­sa­tion from the land al­lot­tees that had ac­quired their land at min­i­mal cost. It was to be ex­pected that builders of projects on the plots would pass on the added costs to con­sumers. They have gone ahead and done so, rais­ing the cost per unit in order to be able pay the stip­u­lated com­pen­sa­tions as de­manded by au­thor­i­ties.

Also, the con­struc­tion work on the projects in this area was stalled since the acquisition row. This has re­sulted in limited avail­abil­ity of op­tions, which in turn has en­abled de­vel­op­ers to have their own way with re­gards to the pric­ing for un­sold in­ven­tory. Higher prices re­sulted and were ac­cepted, as they were still per­ceived to be on a com­par­a­tively lower side.

Ad­di­tion­ally, in­fla­tion­ary pres­sures and the ris­ing cost of raw ma­te­ri­als have com­pounded price ap­pre­ci­a­tion in the re­gion. Be­fore the con­tro­versy, the av­er­age res­i­den­tial rates on Noida Ex­ten­sion were in the range of Rs. 18002000 per sq ft. Cur­rently, they av­er­age at 2800-3200 per sq ft.

Over­all, it can be said that the realty mar­ket at Noida Ex­ten­sion has ac­tu­ally emerged un­scathed out of the whole con­tro­versy. This is be­cause the area con­tin­ues to have unique sell­ing point of lo­ca­tion for af­ford­able hous­ing when com­pared with Noida and Greater Noida. That said, the price ap­pre­ci­a­tions are real enough to buy­ers, and it is ex­pected that prices will now ei­ther re­main sta­ble at the cur­rent lev­els for a cou­ple of quar­ters, or climb only marginally.

The NCR Plan­ning Board (NCRPB) has given its fi­nal nod to the de­vel­op­ments at Noida Ex­ten­sion last year in Oc­to­ber. Noida Ex­ten­sion will prove to be a tough con­tender to other lo­cal­i­ties in NCR, pri­mar­ily in terms of pric­ing and lo­ca­tion. This fact has also spurred com­mer­cial and cor­po­rate ac­tiv­ity in the area, as com­mer­cial prop­erty rates are also far more com­pet­i­tive when com­pared to those in the de­vel­oped sec­tors of Greater Noida and Noida.

Site un­rest: An­gry farmers protest­ing at a com­mer­cial con­struc­tion site

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