REG­IS­TRA­TIONS DOWN BY 30%

Ex­perts at­tribute de­cline to Na­tional Green Tri­bunal order in Noida and over­sup­ply in other NCR ar­eas

HT Estates - - FRONT PAGE - Van­dana Ram­nani

Rows upon rows of brand new res­i­den­tial blocks stand on both sides of Noida E x p r e s sw ay a n d D w a rk a E x p r e s sw ay i n t h e N C R re­gion – but most of th­ese re­main un­oc­cu­pied. To­day, builders are grap­pling with a num­ber of prob­lems, in­clud­ing the Na­tional Green Tri­bunal (NGT) or­ders for ar­eas around the Okhla Bird Sanc­tu­ary and lack of in­fra­struc­ture in some ar­eas, which are keep­ing po­ten­tial home­buy­ers away.

Sev­eral projects in Noida re­main un­sold be­cause of the NGT order for­bid­ding au­thor­i­ties from reg­is­ter­ing prop­er­ties fall­ing within the eco-sen­si­tive zone around the Okhla Bird Sanc­tu­ary. Home­buy­ers in Gur­gaon are also hes­i­tant to take pos­ses­sion be­cause of in­ad­e­quate in­fra­struc­ture fa­cil­i­ties in the area.

Trans­ac­tions are dry­ing up also be­cause of high cir­cle rates in some ar­eas due to which buy­ers have to pay higher stamp duty for reg­is­ter­ing prop­erty.

Reg­is­tra­tions in Noida area have come down by 30% in the last six months largely due to the NGT pro­vi­sions and hike in the al­lot­ment rates in the area, says Vi­jay Chan­del, for­mer deputy in­spec­tor gen­eral, UP stamps and degis­tra­tion depart­ment, Gau­tam Budh Na­gar.

NGT had barred the Noida Au­thor­ity from giv­ing com­ple­tion cer­tifi­cates to projects fall­ing within a 10-kilo­me­tre ra­dius of the Okhla Bird Sanc­tu­ary over a year ago. Last year, a draft no­ti­fi­ca­tion is­sued by the en­vi­ron­ment min­istry said that the sen­si­tive zone around the sanc­tu­ary should be limited to 100 me­tres on three sides. The NGT order im­pacted sev­eral real es­tate projects, de­lay­ing pos­ses­sion. The Noida Au­thor­ity can now only is­sue com­ple­tion cer­tifi­cates to builders af­ter the draft no­ti­fi­ca­tion is fi­nalised. They can then start hand­ing over apart­ments. The long de­lay has meant losses of over 2,000 crore to buy­ers and builders even as the for­mer have been shelling out EMIs as they await pos­ses­sion.

Talk­ing about rev­enues go­ing down by 30% in the last six months, San­jay Srivastava, sub-regis­trar, Ghazi­abad, says in­vestors in the se­condary mar­ket, too, are hold­ing on to prop­er­ties and not sell­ing them.

Reg­is­tra­tions are di­rectly linked to the sales in an area. Sales in NCR have also re­duced dras­ti­cally be­cause of the pre­vail­ing sup­ply- de­mand mis­match, high prices and buy­ers wait­ing for fur­ther cuts in in­ter­est rates.

Most end-users feel that the ticket size and the cost of the units are not jus­ti­fied and that the de­vel­oper has not aligned the prod­uct to their needs. Some of them feel cheated be­cause the de­vel­oper sells apart­ments on the ba­sis of su­per area and gives them a much smaller car­pet area (space within four walls). Many are also of the opin­ion that prop­erty prices are un­jus­ti­fied given the lack of in­fra­struc­ture in the area, says Ashutosh Li­maye, head re­search and REIS.

Ex­pected cuts in in­ter­est rates are also an­other rea­son why many peo­ple are putting off their home­buy­ing de­ci­sions. In­vestors, too, are keep­ing away as they feel the ap­pre­ci­a­tion will be fairly mod­est and the over­sup­ply sit­u­a­tion in the mar­ket may not be at­trac­tive and hence not vi­able. Poor re­turn on in­vest­ments is also likely to have put off a few of them.

An­other is­sue of concern for mar­ket play­ers is the ex­ist­ing over­sup­ply sit­u­a­tion in all NCR mi­cro mar­kets, more so in Noida and Gur­gaon. Haryana’s Mil­len­nium City, how­ever, can tackle the prob­lem be­cause of its strong of­fice/eco­nomic ac­tiv­ity base.

De­vel­op­ers there have also been j udi­cious about not launch­ing too many projects, keep­ing sup­ply un­der con­trol. Full-scale project launches have also been far and few, with per­haps only an ad­di­tional tower be­ing added to on­go­ing projects, adds Li­maye.

The Noida mar­ket on the other hand may have no solutions be­cause of huge sup­ply. Of­fice-led de­mand, too, is not that strong, he says.

The Ghazi­abad mar­ket re­mains af­ford­able and not im­pacted to a large ex­tent be­cause of con­sis­tent end-user de­mand.

SAKIB ALI

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