Homebuyers have fingers crossed Authority should inform buyers about completion certificate status
Areas near Expressway are yet to register a spike in housing demand despite resolution of Okhla Bird Sanctuary problem
Homebuyers who had invested in areas around the Okhla Bird Sanctuary had seen a ray of hope in the government’s final notification setting limits of 100 metres in the eco-sensitive zone around the Okhla Bird Sanctuary on August 19, 2015. With 60,000 apartments expected to be delivered, realty experts, too, said they expected a revival of the Noida market, with which most of the projects around the bird sanctuary are associated. Till date, however, major signs of revival are still not visible.
The only positive outcomes so far have been the slight pick-up in demand in the existing inventory and issue of completion certificates by Noida Authority for housing projects, enabling many homebuyers to get legal possession of their apartments after long delays.
No major movement has also been witnessed in areas near the Noida-Greater Noida Expressway, a 35 km six-lane highway which connects Noida with Greater Noida, once marketed by developers as the USP of their projects. “Any project along the Noida- Expressway boasts of a prime location and easy connectivity to Delhi, Greater Noida and other sectors within Noida, but as other Noida sectors have become equally well-connected and have better locations, the highway can no longer remain a major attraction for buyers. Housing projects in other sectors of the city have also been delivered, but delayed possession in projects near the Expressway mean dashed hopes for homebuyers,” says Gaurav Tiwari, a Noida broker who had to shut shop because of poor demand for housing in the market. Now working as a senior relationship manager with a leading real estate consultancy firm, he says, “We literally have to beg customers to buy apartments. It is difficult to market premium projects along the Expressway.”
For investors, too, the lack of demand is proving to be disconcerting. “I had bought a flat measuring 1,200 sq ft at the rate of 4,050 per sq ft in June 2012 in a leading group housing project along the Expressway. After a year or so, the price went up to
5,200 per sq ft, but today even if I want to sell my flat at 3,800 per sq ft I am not getting buyers,” says Sudhir Sood, a resident of Sector 44, Noida.
Ravi Sinha is another desperate seller who bought a 3BHK unit in 2009-10 in a project in Sector 151 along the Expressway at 2,100 per sq ft. After six years, he is ready to dispose of the property, which is still under construction, but no buyers have turned up.
Developers and real estate agents had for long been saying that the slump in the market had been caused by the National Green Tribunal order on October 28, 2013, restraining Noida Amrapali Sapphire Prateek Stylome Lotus Boulevard 3C Lotus Panache ATS One Hamlet ATS Green Village Exotica Fresco Paras Tierea Gulshan Vivante Gulshan Ikebana Authority from issuing completion certificates for projects within a 10 km ‘protective’ zone around the sanctuary. Though NGT had not imposed a ban on construction, many developers also stopped work on projects and asked homebuyers to wait for further orders from the government. However, now that the final zone has been demarcated, the builders have shifted blame to ₹ 5,300-5,600* ₹ 6,800-7,100 ₹ 5,800-6,200 ₹ 5,500-5,800 ₹ 6,700-7,000 ₹ 9,000-10,000 ₹ 5,000-5,600
₹ 4,200-4,500 ATS Pristine Lotus Greens, Jaypee Aman Paras Seasons Lotus Zing Today Ridge Residency Jaypee Kosmos Jaypee Klassic
Jaypee Kensington Park Jaypee Kalypso Court Imperial Court other factors such as high interest rates and low confidence of consumers in the market.
“With ambiguity around the eco- sensitive zone in Okhla cleared, Noida has not only seen commencement of possession and delivery, but also a slight pick-up in demand in existing inventory. NCR is now battling with high level of inventory accumulated over several years.
₹ 4,000-4500** ₹ 2,700-3000** ₹ 4,300-4,800* ₹ 4,200-4,500* ₹ 3,500-4,500*
₹ 6,500-8500** As macroeconomic factors do not as yet encourage a sudden spurt in housing demand, developers, too, are staying away from launching new projects. High interest rate and low confidence of consumers on the recovery prospects of the Indian economy have seen them postponing buying decisions. This phenomenon Noida Authority should put on its website the processing stage or reasons for delay in granting completion certificate to residential projects. The government’s final notification on demarcation of a buffer zone to protect the Okhla Bird Sanctuary was issued in August, but those who have bought properties in the area still don’t know what’s happening with their projects or if their certificates have been issued.
Many developers are refusing to inform buyers about the status of their projects and Noida Authority, too, is doing nothing to clear matters. It has yet to put in place a system to inform people about the status of projects around or close to the sanctuary.
“Every project must have a completion certificate before apartments are handed over to homebuyers. Delivery of apartments without such a certificate is illegal. However, like many others of his ilk, my developer has offered possession to me in his project which does not have the requisite certificate, and keeps changing the dates on which he expects to get it. Noida Authority, too, did not give us a satisfactory reply when we tried to find out why the certificate had not been given. We have no option now but to file a petition in the high court,” says Ashish, a resident of a premium residential project in Sector 45, Noida.
Without a completion certificate, homebuyers cannot become legal owners of their apartments.