DELHI: When the Indian Grand Prix was launched at the Buddh International Circuit (BIC) near Greater Noida in 2011, there was a lot of buzz in the realty market in the region. Two years down the line, the initial sheen seems to be fading, at least for the time being. This, despite the fact that the region has seen an appreciation of up to 30% in prices even after a slowdown in the sector.
Anil Kumar Sharma, CMD, Amrapali Group, and president, the Confederation of Real Estate Developers Association of India, Delhi-NCR chapter (CREDAI NCR), says, “Although the future seems to be bright for Yamuna Expressway, given the global landmark of F1, for the past one year, the response has been a bit low and muted as compared to the initial years.”
Developers say the major reason behind the poor response is the slow pace of connectivity and urban infrastructure development being initiated by the government. Coupled with this, even the land acquisition process in the area is yet to pick up, at least till the time the UP government streamlines its policies.
Pankaj Bajaj, managing director of Eldeco Group, and RK Arora, CMD of Supertech, told fe that the properties around the F1 track are a long-term bet for investors and end users. “The movement in the next two-three years will lead to a better scenario, but as of now, it is becoming a second choice for users who are unable to invest in Noida or Greater Noida,” they say.
“F1 has certainly drawn attention to the infrastructure in Noida and Greater Noida. The realty market in the region has fast emerged as a luxury destination and will show growth in the coming days with the changing economic scenario,” says Harpreet Singh Batra, MD, Imperia Structures.
But will it remain as bright, given that the future of F1 racing in the country is in doubt? Manish Agarwal, MD, Satya Group, and secretary, CREDAI NCR, doesn’t think so. “I don’t think it will change the ground reality even if the Indian Grand Prix doesn’t remain a part of the next year’s racing calendar. F1 itself is a great anchor for developers as returns will not come from the event, but out of the real estate monetisation of the township. With connectivity to Agra, which is a major tourist spot, and travel time being reduced considerably, the Yamuna Expressway has already attracted the interest of major developers,” says Agarwal, adding, “Three universities are already operational there and others are being planned. These will also go a long way in realising the area’s potential.”