Homebuyers have fingers crossed
isn’t just restricted to housing but to consumer goods, automobile, etc as well. Muted loan growth too suggests lack of confidence,” says Mohit Goel, CEO, Omaxe Ltd.
Some realtors, however, feel that it’s too early for the market to react to the final notification. “The demarcation of the sanctuary’s protective zone will have a huge impact and will bring positivity to the primary and secondary markets. The Noida market in the last two years faced difficult times and a major reason for this was the uncertainty over the bird sanctuary. Due to this, buyers hesitated to invest in properties. We are confident that the market will now show positive growth due to the resolution of the sanctuary issue and also the reduction in the interest rates of home loans,” says Vidya Basarkod, president, sales and marketing, Jaypee Greens. Jaypee Greens has over 4500 apartments ready for handover and will start giving possession as soon as the company receives completion certificates from the Noida Authority. “We are hopeful that this will create a positive buzz about our projects and will reassure prospective customers,” says Basarkod. About the sanctuary issue, Basarkod says, “it did create a sense of uncertainty which affected both the primary and secondary markets. It was also a cause for financial burden to the existing buyers due to delay in possession but we are hopeful that this will not have a long-term effect. The market should show signs of growth and improvements in the coming months. Also customers are intelligent and understand that this was a specific issue and
not a fundamental problem with the Noida market.”
Another issue which is impacting the realty demand is the delay in granting completion certificates. Without the completion certificate, homebuyers cannot form apartment owners’ associations. “No association means we cannot take charge of maintenance service etc from the developer and the services he provides are pathetic,” says Ashish, a resident of a premium residential project in Sector 45, Noida
The two main reasons for delays in issue of completion certificates for group housing projects in Noida are (a) nonpayment of lease rent for land to Noida Authority by the developer (b) deviation by the developer from sanctioned layout plans and
carrying out illegal construction work on the project.
“In any case, if the Noida Authority displays the status of completion certificates of all the projects on its website, it will be easy for the homebuyers to find out why these have not been issued for their projects, helping them plan their next course of action against the developer. In many cases, developers haven’t even applied for the certificate and are misleading buyers by telling them that the certificate is under process,” says Rahul Rathod, a Supreme Court lawyer and resident of a premium residential project in Noida.
When contacted Rama Raman, CEO, Noida Authority, was not available for comments.