NOIDA AND YAMUNA EXPRESSWAY SET TO COST MORE
Noida: In a recent update this month, the authorities controlling Noida and Yamuna Expressway had increased the land allotment rates across all categories, except for commercial lands. The bracket seems to be a bit wide with the lowest hike being 7.8 percent and the highest 33.33 percent per square meter. The blow had been introduced with an immediate effect. With the land allotment rates increased, property prices at Noida and Yamuna Expressway are all set to go north. Greater Noida will however not see any change as this year in February the rates were increased by over 10 percent, effective from 1st April.
With increasing land rates being executed, the developers are finding it hard to restrict the prices of newer projects. Noida has come to a point where land is available in less quantity; whereas Yamuna Expressway is a young and budding region that is enjoying lesser prices. Demand has an absolute inverse relationship with prices. Already the demand for the Noida market is on a lower side due to such high prices; and Yamuna Expressway gained momentum because of the lower prices. But this move can hamper the demand a bit especially at Yamuna Expressway.
In view to the decision of authorities; Mr. Sushant Muttreja, CMD, Cosmic Group says “Except commercial-use land, all other categories of land will become more expensive now for developers in the region following this move and property prices are expected to move upwards. The market for the investors will not be affected at all, but the future end users interested for Noida will leave a bit of a setback on demand. Although, the property prices at Yamuna expressway are still very competitive as compared to any other region of NCR so its demand might not even get affected”.
The increasing prices of lands can have a negative impact on the demand in the long run. Mr. Rupesh Gupta, Director, JM Housing says “Any form of increase in price affects the demand adversely in the future. Right now, the demand might be stagnant or even increase for the projects which are under construction. But after the current projects; every future land purchase will be costlier which will mean that the sale price will be higher which will leave a direct impact on the customer’s pockets. This will gradually start affecting the demand in the long run”.