Land acquisition woes spoil Noida party

Just two months ago, the Noida Expressway was a happening site with construction at its peak and brokers busy selling property out of small tents outside the construction pockets. But the scene has changed drastically.

The recent land acquisition controversy in the area has prompted the owners of approximately 50,000 flats in Greater Noida and Noida Expressway to keep their fingers crossed, while real estate agents are having a tough time selling property.

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"The high court order on the land acquisition affected only a small portion of land but last month has been bad for the property market in the area," a senior executive of realty brokerage firm Investors Clinic told Mail Today. "Sales have dropped drastically and hardly any deals are taking place as people are still unsure about the fate of the projects here. People are reluctant to invest in the area despite developers reassuring them about bookings," he said.

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The Noida Expressway and Greater Noida have emerged as the hub of affordable housing, offering dream homes to those who could not afford one in the overheated Delhi realty market. Noida accounted of about 50 per cent of the total property market in the National Capital Region (NCR) by the end of 2010. This is a massive rise from the 13 per cent of 2008, according to PropEquity, a leading real estate intelligence portal.

Dealers, however, said that the area will lose its sheen if the confusion persists. It is not just the controversy over land acquisition that has played spoilsport, dealers said.

The recent hike in interest rates has also forced buyers to tighten their purse strings, they added. "It is not only the land acquisition controversy that has affected the property market. The continuous rate hikes by the banks and increasing EMIs are also forcing buyers to put their investment plans on hold," said Sumit, an executive of Capitol Realtors, a real estate brokerage firm in Noida.

"Whatever be the reason, we are losing badly. There are hardly any sales and buyers are scared of investing here though we try to convince them that only a few projects are affected," he said.

There are other issues too, that are troubling the buyers. "My developer has assured me that I need not worry about my booking and said that if any problem arises, I will be allotted a flat at a different place. However, I have two concerns. First, what if I do not like the location of my alternate flat and second, will I get possession on time. I am really confused about whether I should wait or pull my money out," said a buyer who has booked a flat in Gaur City II. However, developers said this is a temporary situation and land in the area will be back in demand once the controversy settles down. "We are pretty sure that the land acquisition row is a temporary situation and the moment things get sorted out, buyers and investors will once again rush to book property," said Gitamber Anand, vice- president, Confederation of Real Estate Developers' Associations of India (Credai).

"Builders and developers who are embroiled in this issue have assured all investors of their commitment to safeguard their investments to the extent that they have promised to shift them to a different location, if need be," Anand said.

Courtesy: Mail Today