Noida Extension, the new property paradise
Buying a house in Noida Extension was a nightmarish thought for many consumers and investors last year. While the farmers were at loggerheads with the builders over compensation issue, the fate of lakhs of buyers was hanging in balance until the court order on Noida Extension was out.
But with the National Capital Region Planning Board (NCRPB) giving its nod for master plan—which was made mandatory by a court order in October 2011 for any construction activity in Noida Extension— the builders and buyers can heave a sigh of relief.
Reema Sharma of Zeebiz.com caught up with Rajat Tandon, Executive Vice President of Investors Clinic at the Budget Fiesta— a two-day Budget Property Home Exhibition last week.
Tandon, sharing his views on the prospects of real estate sector—specifically the Noida Extension area said, “The footfall that we have witnessed in this fiesta speaks volumes of the changing mindset of prospective buyers. The Approval by NCRPB has boosted the confidence of the buyers who otherwise remained very cautious of investing in housing sector covering Noida Extension.”
Real estate developers expect home prices to rise by at least 25 percent in Noida Extension as they are now getting ready to again start construction which was stalled for over a year. Tandon believes, “Following NCRPB’s approval, builders will start construction activity again. It is only a matter of time. And from here there is no going back. But the price is not going to remain the same.”
“See, at the end of the day, the builder is a businessman. He will have to look after his profitability. He won’t bear the rising input cost alone; the buyers will be saddled by the burden in some way or the other. The prices of affordable houses have risen 20 to 30 percent in the last two years. The sentiment is bound to remain upbeat in days to come.”
About 2.5 lakh homes have already been launched in Noida extension out of which about 1.5 lakh were sold about a year ago before the farmers protest crippled construction work. Prices of houses ranged between Rs 2,100 and Rs 2,200 per sq ft in this region last year which has now escalated to 3250 sq ft (as per current booking).
Talking about the future of realty sector in the Noida Extension area, Tandon says, “This is a time for the investors and home buyers to celebrate. But at the same time, they will also have to be mindful of the price factor. The price at which you are getting the house today will escalate by 20 percent in the next three months. And the day construction starts, it can shoot up to 50 percent also (during the construction period).”
“It is high time you booked your house and if you want go for investment purpose this will churn out 100 percent profit once the possessions of these housing are cleared. In the coming four to five years, prices will go sky-high after which there might be saturation,” he added.
This is a fantastic opportunity for the builders to tap both investors as well as end users. But considering the burgeoning development activity taking place in the NCR, it won’t be imprudent to go forward. The simple theory is—realty prices are upwardly mobile and even if you don’t intend to move in anytime soon after possession, a property can certainly be used as a cash cow!