Largest Hub for Affordable Housing
Noida, Greater Noida, and Yamuna Expressway have vast tracts of land and are poised to facilitate the expansion of the NCR; in particular, they are expected to provide affordable housing to the burgeoning population of the NCR. PRABHAKAR SINHA writes
Noida Extension, now known as Greater Noida West, is one of the fastest developing areas and the largest urban development for affordable housing in the National Capital Region (NCR).
It is within an easy distance from central Delhi and Noida, and one can buy a two-bedroom apartment for as little as Rs 25 lakh here.
Around 2.5 lakh dwelling units are planned to be constructed on the entire area of Greater Noida West, which is being developed on 8,980 acres. According to the available data, around 50 developers are implementing over 60 townships and standalone projects in the area. When all the projects are completed in the next five years, the region will house a population of over one million.
The area is a big draw for end users as it is only 6km from Noida’s city centre and the commercial hub in Sector 62. It is also within easy commutable distance from workplace for thousands of people and accords a great opportunity to middle-class end users to own their own house here. The authority is now developing roads, sewerage, water supply and electricity, which are of world-class infrastructure grade.
When the project was started in 2010, rates of the apartments were around Rs 2,000 per sq feet. But due to the land agitation, the prices in the area went up and are now quoting at around Rs 3,000 per sq feet. But still, due to its easy commutable distance from central Noida and Delhi, houses in the area are in high demand. Any investment made in real estate in the area at the present rates, consultants say, will fetch good returns.
The developments in the Noida Extension took off in 2010; a period when builders faced a tough time due to the global slowdown, which impacted the domestic economy also. At that time, Noida Extension was planned as a hub for affordable housing with developers launching projects at very competitive rates, ranging between Rs 1,800 per sq feet and Rs 2,200 per sq feet.
Many developers also sold one-bedroom apartment for as little as Rs 10 lakh in the region. A two-bedroom apartment was available for Rs 15 lakh to Rs 18 lakh. Not only this, a three-bedroom apartment was selling for Rs 22 lakh to Rs 24 lakh.
A few hundred metres from this area, apartments are being sold at Rs 4,500 per sq feet. In this way, Noida Extension still provides affordable housing at highly competitive rates.
But later, due to the farmers’ agitation and various court rulings on the land acquisition by the Greater Noida authority in their wake, all the projects here ran into a period of uncertainty.
This led to a complete halt in construction work for more than a year. Later, the Greater Noida authority settled with the farmers after paying an additional amount. As the authority runs its business in a no-loss-no-profit mode, it passed on the additional cost to the developers.
The authority levied an additional charge of around Rs 2,250 per sq meter, which is almost 20% of the original land cost, on the builders. This led to increase in cost for the developers.
But the developers decided not to charge anything additional from existing buyers. Thus, to recover the additional cost imposed upon them, the developers have been forced to increase the price of the remaining unsold units. Developers say that as 20-30% of the units have already been sold, they have to increase the price of the remaining 70-80% of their unsold stock to recover the increase in cost of the entire project.
Manoj Gaur, the managing director of Gaursons, says that the developers have to increase prices only to recover the increased cost burden. The delay in the construction of the project also led to huge escalation in costs, as the price of steel, cement and other inputs have gone up during the intervening period.
At the same time, large developers, constructing big projects and with only a small chunk of their inventory sold prior to the problem in the region, can recover the extra cost imposed upon them by increasing the prices of their remaining unsold units by a small amount. But the same is not true for small developers, who have already sold a substantial chunk of their projects before the problem erupted in the area.
In general, developers have increased the prices by between Rs 2,700 per sq feet and Rs 3,200 per sq feet in the area. Even then, the rates for apartments here are still the cheapest in the NCR.
The Greater Noida authority has decided upon a number of measures to increase connectivity to the area. To provide direct connectivity to the existing Sector 32 (City Centre), the Metro line will be extended up to Noida Extension via Sector 72. The 7kmlong stretch will cost around Rs 1,400 crore, of which Rs 1,100 would be shared by Noida and Greater Noida authorities, depending on the territory falling under their jurisdiction. The City Centre Metro station, which is proposed to link Sector 62, would branch out at Sector 71 to take the line till Noida Extension.
A 100m-wide commercial belt is planned on one side of the 130m road as per the Master Plan 2021.
To meet the basic needs of the area, the Greater Noida authority is planning to set up its own power sub-station to provide 24-hour quality power supply. A 315MW power sub-station is going to be commissioned soon, while construction of a pipeline from Dehra to Greater Noida via the Upper Ganga Canal is almost complete, which will give a 24×7 water supply; Greater Noida will get 85 cusecs of water through this pipeline.
Keeping pace with established project innovativeness and with a mission to change the very face of this smart city, several developers have entered the real estate market here. To increase the commercial space in the city, the authority has allotted several institutional and commercial plots.
The Master Plan-2021 of Greater Noida, which has been approved by the NCR Planning Board, envisions a grand plan of expressways, major road networks and Metro connectivity. In the plan, 16% of the total proposed urban agglomeration has been earmarked for green zones.
Because of its attractiveness, a large number of developers have flocked to the area. The largest player in the area is the Amrapali Group, which is developing a number of townships in the area. The group has projects like Amrapali Golf Homes, Amrapali Verona Heights, Amrapali Leisure Park, Amrapali Dream Valley, Amrapali Leisure Valley, Amrapali Spring Meadows, Amrapali LA Residentia and Amrapali Centurian Park, among others.
Another big player, Gaursons Ltd, has over 250 acres of land in the region. The group is developing Gaur City 1 on 125 acres, Gaur City 2 on 115 acres, and Gaur Saundaryam over 17 acres. The Supertech Group, which is among the three largest developers in the region, has townships like Eco village 1, Eco Village 2, Eco Village 3, and Oxford Square.
Besides these, a number of standalone projects are being implemented in the area. Paramount Group’s Paramount Emotions, Mahagun’s Mywoods, Earth Infrastructure’s Earth Towne, Ajnara’s Ajnara Homes, Le Garden, Gulshan Homz’s I Homz are some of the projects in the area. Antriksh Group has launched Antriksh Golf link over 61,000 sq meters in Sector 1.
Posted on April 11, 2013, in Real Estate and tagged Affordable Houses in Delhi NCR, Builders in Greater Noida, Real Estate Developers in Delhi NCR, Saviour Builders. Bookmark the permalink. 1 Comment.