Hike in circle rates may take away buyers from Noida

The recent 25 per cent hike in Noida’s circle rates has left buyers with low sentiments. Many buyers who were planning to purchase a property have pulled themselves out of the market. This was revealed in a survey done by MagicBricks.com which aimed at studying the impact of increased circle rates in Noida. As per the results, almost 50 per cent of the respondents flatly refused to invest in Noida post the price hike. Another 26 per cent of the respondents were having second thoughts.

Sachin Garg, Deputy General Manager, Mahagun India Pvt Ltd, says, “Though such hikes result in good appreciation, however, the buyers suffer. With the original budget, the buyer is forced to shift to other areas which fit his budget. Noida also might lose its share of buyers.”

The survey clearly revealed the major concerns of the buyers. While 45 per cent of the buyers feared a price hike in property values, 35 per cent were concerned about registration fees going up. About 90 per cent of the buyers were also bothered about the reduction in the range of negotiation.

Reiterating the buyer’s concerns, Alok Singh of Reality Infratech says, “A hike in circle rates results in a hike in the cost of property. But this might not be always true. The rise in property values may be gradual and an accumulative result of several market drivers. However, the burden of the registration fee, undoubtedly falls on the end-users’ shoulder. In Noida, the stamp duty is 5 per cent of the circle rate and a 25 per cent increase in circle rates would lead to a similar increase in the registration cost.”

While it seems to be a hard-hitting reality that a hike in circle rates has impacted the buyer sentiments negatively, there are some who are taking it positively. Almost 81 percent of the respondents felt that the hike would help in reducing the difference between the actual price and the market value, which consequently would result in a reduction in the cash component. Another 18 per cent of the respondents felt relaxed with the ease of availing higher amount of home loans.

With much speculation around the hike, the actual impact is yet to be realized. For some it may be a boon, but some might see it as a bane.

Source: MagicBricks.com, August 2013
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Noida: Price correction by 10-15% in certain areas

Property prices in certain areas of Noida have corrected by 10-15 per cent in the current month. In areas such as Sectors 76, 77, 117 and 119 multi-storey apartments, which were selling at Rs 4,500 per sqft until July 2013, have now been priced between Rs 4,100-4,200 per sq ft.

“Some developers have adopted the strategy of cutting prices in order to raise finances and sell inventory, and it is working,” says Girish Jha, a city-based realtor. On the other hand, Aman Agarwal, director – KV Developers, said: “The recent price correction is a result of withdrawal of investors from various projects they had invested in when the Rupee was stable against the Dollar. But now since the value of Rupee is volatile, investors are in a double mind. However, this is limited to certain projects only.”

Meanwhile, home buyers are making the most of this opportunity. Generally, residential properties in the resale market are available at Rs 400-500 per sq ft lesser than the price quoted by a real estate developer. This is why, a number of home buyers get diverted to the resale market and the developer ends up holding unsold inventory.

Now that the prices in fresh and resale market are at par, people are buying from the developer directly. After all, in this case, they can choose from various options. The correction has triggered sales and many such units have been taken up by buyers instantly, states Jha.

However, Agarwal believes that in the normal course, there is very limited scope of price correction owing to rising input costs and in the long run, prices will remain intact.

Meanwhile, the response to price correction shows that there has been a latent demand for properties priced at reasonable levels.

Source: Times Property, August 2013
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Preferred Residential Destination

Sound infrastructure and excellent connectivity to New Delhi, Gurgaon, and Faridabad has made Noida a choice residential destination.

Infrastructural developments like roads, sewerage, power, water supply, etc, of Noida and Greater Noida are far better than those in most new cities and urban agglomerations that have come up in the country. And this infrastructure has helped in bringing realty boom to Noida and Greater Noida.

Today, reputed developers and builders from all over the country like JP, Unitech, DLF, Parsvnath, Omaxe, Antriksh, Amrapali, Supertech, Assotech Realty, Assotech Ltd, Ajnara, Gulshan Homz, Mahagun, among others, have started showing interest in Noida and Greater Noida, owing to the high demand here and the infrastructural support on the ground.

Investors, too, have been flocking to the Noida market, riding on the back of good returns. Excellent connectivity to New Delhi, Gurgaon, and Faridabad has also made Noida a destination for business travellers and investors.

Established under UP Industrial Development Act, 1976, Noida has developed a lot and has been perpetually in news for being an ideal real estate location for investment purpose.

The NCR Planning Board has already approved Master Plan-2031 of Noida, which was drafted in 2009. In the plan, there is a lot of scope for infrastructural, residential, and commercial development like widening of roads with underpasses and flyovers, highrise projects, hotels, major Metro and road linkages to ease the traffic.

Ananta Singh Raghuvanshi, a realty expert, says: “The most decisive factor in purchasing residential real estate has largely been location, location, and location – other factors like price, amenities, and the developer’s repute, also prove decisive for a potential home-buyer in making the final choice. However, in the current scenario, elements like water, energy, transportation, and other variables have assumed considerable significance to the prospective clients seeking to purchase a place to live in. Many premium townships across India were once bandied about in the initial stages of launch, but after the handover, end users complained that they were woefully inadequate in basic infrastructure like roads, uninterrupted electric supply, healthcare facilities, etc.

“With Noida-Greater Noida emerging as a preferred living space, it is important to develop support infrastructure around living spaces either prior to the housing development or in tandem with the growth in real estate construction in a given township. Also, a buffer capacity should always be kept in reserve for further expansion to the support infrastructure, be it the expansion of the road width or increase in load-bearing capacity of the power supply grid.”

Deepak Kapoor, director of Gulshan Homz, says: “Undoubtedly, Noida has emerged as a preferred destination for thousands of families who look for the advantages of a metropolitan framework, but without all the attendant evils of pollution and cramped living normally associated with major metropolis. This city has advantages like international-quality infrastructure, along with uninterrupted power and water supply. With these facilities, Noida is one of the fastest developing residential and commercial hubs in the country. IT, insurance, institutional, and residential sectors in the region are the main engines of growth around which the entire township is being developed. The Noida authority is ensuring that the place has world-class infrastructure where every sectoral player would like to come and invest.”

Rakesh Yadav, managing director of Antriksh Group, says: “There is a realty boom and the demand for residential property has gone through the roof. Real estate developers are working with commitment and dedication to ensure that the infrastructural development of Noida matches with the emerging needs of all the potential investors. One of the major reasons that the properties in Noida are in such demand is the proximity of the city to the national capital New Delhi.”

Ashok Gupta, managing director of Ajnara India Ltd, says: “The Noida authority is working to decongest various bottlenecks in the way of smooth traffic. The roads with heavy traffic have been widened to meet the increasing traffic loads. The authority has earmarked a lot of space for developmental works to encourage more MNCs into the place. On the requisition of the BCCI (Board of Control for Cricket in India), the Noida authority has allocated 40 acres for an international cricket ground in Sector 101, 102, 103 – this facility will be located in the 300-acre sports complex near the expressway.”

Sunil Mittal, managing director of Addela Group, says: “When we start looking out for land to develop our realty projects, Noida is always on priority; the city has world-class infrastructure that can support new developments. Good connectivity and proximity to Delhi has helped in its growth. Today, Noida is in great demand as it compares favourably in the affordability criteria vis-a-vis Gurgaon.”

Arvind Singh, managing director of KRASA Group says, “Infrastructure has been the backbone behind Noida’s emergence as a major realty destination. Areas near Noida like Greater Noida, Indirapuram, Vaishali, Raj Nagar Extension, Ghaziabad, and Meerut have all benefited from the developments in Noida. For any kind of residential or commercial development, infrastructure remains the main element.” Sunil Rajput, managing director of Rajnigandha Group, says: “Noida is known to be a hub for various multinational firms, technology parks, and even the outsourcing IT services companies. Several well-known industries and businesses have chosen to establish their base here owing to the availability of resources, proximity to Delhi and other developed places, and availability of the latest modes of transportation.”

Buyer-Investor Friendly:
Noida has evolved into an ideal destination for property investments, which have assured returns in the future. Noida is well connected to Delhi, Greater Noida, and with the other NCR regions as well. The city is supported by three main expressways, facilitating speedy connection with all the areas of the NCR. The Noida-Greater Noida Expressway, DND Flyway, and Yamuna Expressway enable people to reach their destination promptly and comfortably.

It is also easy to reach the IGI airport, which makes access to any domestic or international location that much smoother. Also, the railway station in Anand Vihar in Ghaziabad, the Old Delhi railway station and the New Delhi Railway Station are also easily accessible from Noida.

“Noida has always been the preferred destination for end users with nearly 70% of all buyers here being end users. This has been possible not just due to its close proximity to Delhi but also due to the beautifully-designed infrastructure, presence of wide connecting roads, commercial centres, recreational places, etc. Noida has always been a major residential hub and with many more developments taking place, it will be a preferred destination,” Sanjeev Kumar, managing director of Swarneem Group, says.

Quick Bites:
Infrastructural projects like roads, sewerage, power, water supply, etc, which have been developed in Noida, are far better than those in most new cities and urban agglomerations that have come up in the country.

Source: Times Property, August 2013
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