BACK IN THE RECKONING
Noida Extension has always been the hub of affordable housing with initial project launches back in 2009-10 at R1800 to R2000 per sq feet. At this cost, the dream of owning a home seemed a reality for most of the potential homebuyers and a lucrative investment opportunity for the investors. However, the land acquisition issue (litigation over the compensation to farmers) and the Allahabad High Court’s order in October 2011 to get the Greater Noida Master Plan 2021 approved before construction work commenced, were major setbacks to the Noida Extension property market. Developers as well as buyers and investors heaved a sigh of relief as the impasse over the area ended with the approval of the Greater Noida’s Master Plan-2021 by the NCR Planning Board in August 2012, clearing the way for resumption of construction of hundreds of housing projects halted in the area.
Noida Extension is back in the reckoning again as a lucrative investment destination in the residential sector. The area has witnessed approximately 15-20% increase in capital values in the last one year. It has maintained its USP of affordable housing. Even when all other upcoming residential markets in NCR are quoting average prices anywhere between R5500 to R9000, Noida Extension is witnessing new launches at R3200 to R3500 per sq ft. Due to this cost arbitrage, both investors and end-users are buying properties in the region. However, it is important to note that only those projects are seeing high absorption where the developer has been able to prove the project’s credibility. Developers are willing to share building plan approvals and other documents necessary for establishing the authenticity of the project. Both end-users and investors are now more informed and educated on the due-diligence process required before buying or investing in a property.
In a nutshell, Noida Extension is back in the game. Having said that, the potential buyers have to carefully evaluate the projects they choose to buy or invest in. They should carry out a thorough due diligence and ensure that the project is clear of all legal encumbrances. The area will certainly witness increased pace of real estate activity in times to come and will fetch good returns for investors with an investment horizon of two to four years.