DELHI: Despite the fact that demand in the realty sector is slow to some extent the Greater Noida Industrial Development Authority (GNIDA) has recently announced a 10.21 per cent increase in the allotment price across all categories of land in the city. The new rates will be applicable from April 1, 2014 onwards. However, this is not the first time that such an increase has taken place. The GNIDA follows this practice almost every year. For instance last year too, the GNIDA had hiked the land rates by 8.53 per cent.
But, it is certain that the hike in the land prices by the GNIDA leads to hike in the real estate sector in Greater Noida. It also leads to hike in the prices of all types of properties. There is a possibility that developers may also hike the allotment rates. Investors, end users and others, who find themselves a “misfit” in other regions of the NCR (National Capital Region) due to financial constraints, are usually “fit” for Greater Noida. This is because the rates in the real estate sector are still “affordable” in Greater Noida as compared to the other regions of the NCR.
The most favourable point in Greater Noida is that investors, end users and others associated with the real estate sector consider their investments “safe” in Greater Noida. Only because of this reason the land prices in Greater Noida did not come down even during the recession. The main reason behind this mentality is the “price affordability”. This is why Greater Noida is becoming everybody’s choice for land or property at “affordable” rates.
There are apprehensions of a hike in prices of land and property with the recent hike in the allotment prices by GNIDA. It is expected that the rates in the real estate sector will further increase in the area after the parliamentary elections 2014. It is hoped that the market sentiments will improve after the formation of the new government at the Centre.
Interestingly, Greater Noida is being connected with the Metro. It is expected that work on the Noida-Greater Noida Metro rail project will begin in May or June 2014. Once the project is completed, it will improve the public transport system. There is also a proposal of launching hi-tech city bus service in the next few months. This will add another feather to Greater Noida. Players in the real estate sector are hopeful that the price of land and properties will get a push after these two projects are completed in the future. Besides, there is also a proposal of starting helicopter services for tourists between Greater Noida, Mathura and Agra. Efforts are also on to further improve the civic amenities in the area. Efforts are on to provide 24-hour water supply to the residents.