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Prices Crashing in Greater Noida : CONFIRMED!

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Prices Crashing in Greater Noida : CONFIRMED!

Last updated: April 17 2013
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  • Prices Crashing in Greater Noida : CONFIRMED!

    Here is the first confirmed news of the prices crashing! Blood bath continues:

    Farmers' agitation in Greater Noida hits property prices : Uttar Pradesh: India Today

    Farmers' agitation in Greater Noida hits property prices

    The clash between agitating farmers and the Uttar Pradesh police over land acquisitions in the Greater Noida area has sent shockwaves through the area's booming real estate market.
    Apartment prices have crashed as much as 10-15 per cent over the last few days, property market players said. The fall has been even steeper in the case of freehold plots. Even as the issue blew up into a major political row, with the ruling Bahujan Samaj Party pitted against major Opposition parties like the Congress and the BJP, a recent court ruling quashing the acquisition of some land in one of the villages in the area has caused further alarm among buyers.
    "I have booked a home with Amrapali. Now, I don't know what is going to be the fate of my investment. They have verbally assured me that my money will be returned, but I have received no communication from them. I just want to withdraw my money at this moment," said Rajeev Sharma, a home buyer.
    In rulings on two separate but similar cases issued on May 12 and 13, the Allahabad High court quashed the acquisition of land by the Greater Noida Industrial Development Authority (GNIDA) in the Chak and Sahberi areas in Greater Noida.
    A day after annulling acquisition of nearly 157 hectares of land in Greater Noida, the Allahabad High Court on Friday annulled the acquisition of 72 hectares of land by the GNIDA in Surajpur village.
    In these cases, the state had invoked emergency powers under Section 17(1) of the Land Acquisition Act, 1894, which dispenses with the right of the landowner to be heard by the land acquiring agency.
    The authorities had argued the land was needed on an urgent basis for planned industrial development and if not acquired quickly, it may give way to unauthorised construction and illegal encroachment.
    They had also argued that if a public inquiry was allowed, it would take several years to be completed, thereby defeating the purpose of the acquisition. In all the cases, however, the court held that invoking section 17(1) of the Act was "illegal, arbitrary, discriminatory and was in colourable exercise of power".
    This has created panic among homebuyers and developers alike, who feel that the status of the ownership of the land in which the properties they have invested in are situated, is now in doubt.
    "After the decision by the Allahabad High Court quashing the land acquisition by the GNIDA, there is a state of confusion among buyers, with many wanting to pull out of deals already struck. In some cases, prices have fallen by 15 per cent in just three days," said a dealer from Investors Clinic, a property brokerage firm.
    "In the last two to three days, all the calls we are receiving are from buyers asking us how to withdraw their money. The problem is not that grave but buyers are anxious. As developers are facing pressure, prices have taken a knock," said a consultant with Axiom Estates, a leading brokerage firm.
    For instance, the price of a 2BHK flat in Paras Seasons in Sector 168 has fallen from Rs 24 lakh to Rs 20 lakh. The price of a premium apartment in the same project has come down by Rs 6 lakh over the past three days. Greater Noida, repackaged by developers as 'Noida Extension' to make it sound more similar to the better-developed Noida area adjoining Delhi, had emerged as a magnet for middle class buyers looking for affordable homes on tight budgets.
    There are as many as 55 developers working in the Noida Extension area, and the construction of about 10,000 homes is already going on in this area. In fact, almost all the leading builders in North India are present here.
    With stakes so high, and with so much investment already having been poured in by the developers, the court orders have come as a stunning blow, since buyers are in the dark as to how the land was originally acquired by GNIDA.
    The political firestorm which broke out in the wake of the violent clashes between farmers and the police has only served to add fuel to the fire.
    "The entire episode has affected not only numerous apartment buyers but also reputable developers who have endeavoured to provide affordable housing in the National Capital Region area," said Getambar Anand, vice president, Confederation of Real Estate Developers Associations of India (CREDAI).
    "The land was allotted to developers through a fair process of public auction by GNIDA through a registered lease deed and the building plans of proposed projects have been duly sanctioned by GNIDA. In the entire process the developers have not been involved in any way whatsoever in the land acquisition," Anand added.
    To sort out the issue, representatives of CREDAI met with GNIDA authorities last week and have been assured that the issue would be resolved "as soon as possible" with the farmers.
    The developers affected by the decision include Amrapali Group, whose Smart City project has over 5,000 houses. Projects by developers like Mahagun Builders and Supertech too, have been halted. Mahagun Builders had planned 350 villas, of which 50 have already been booked.
    Developers are also trying to assure the buyers by saying that only a small portion of their projects are being affected and that their investment are safe. Amrapali Group has already promised to refund money to their buyers and said they will provide an alternative site in case buyers are agreeable.
    Dhiraj Jain, director, Mahagun Developers, said, "Only some portion of land, which has been set apart for future development, might fall in the said area, but nothing has taken off yet there."
    However, these assurances are not enough for the prospective buyers as they fear that the whole Noida Extension land acquisition is under question now.
    "I have booked my home with Supertech. The project does not fall in the affected area, but I'm not sure that my investment is safe. I have already applied to withdraw my money," Sonia Chavan, an executive with an advertising agency, said.
    Activists say there could be more trouble ahead for developers. According to Satpal Choudhary, a land activist who filed a PIL in the Allahabad High court against the acquisition, "The acquisition was done using emergency powers. The same was done in other villages also, so the acquisitions may face the same fate."
    Last edited May 20 2011, 12:17 PM.
  • #2

    #2

    Re : Prices Crashing in Greater Noida : CONFIRMED!

    Things seem to be worsening up, if the above is correct . If the situation continues like this for some time, we could see some panic selling, followed by prices crashing further .

    It is more of wait & watch & the situation looks quite unpredictable .
    Please read IREF rules | FAQ's

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    • #3

      #3

      Re : Prices Crashing in Greater Noida : CONFIRMED!

      PANIC = LOSSES , its like share market

      if you panic now and sell at lower rate, losses will be there for sure.

      Hold on your investment for 1-2 years and things will be back on track.

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      • #4

        #4

        Re : Prices Crashing in Greater Noida : CONFIRMED!

        Great...

        Stellar Jeevan was selling at Rs 1,700 psf ... so if anyone want to sell at 40% discount i.e. Rs 1,020 psf, do feel free to contact me. I would love to buy one 2 or 3BHK at that rate.

        Open Offer

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        • #5

          #5

          Re : Prices Crashing in Greater Noida : CONFIRMED!

          It looks like the prices are crashing in the whole NOIDA area, not in just the Greater Noida. "Paras Seasons in Sector 168" quoted in the news is on the Expressway location of Noida!

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          • #6

            #6

            Re : Prices Crashing in Greater Noida : CONFIRMED!

            Originally posted by amitexpert View Post
            PANIC = LOSSES , its like share market

            if you panic now and sell at lower rate, losses will be there for sure.

            Hold on your investment for 1-2 years and things will be back on track.
            Wish if there was Short Sell option in RE

            Comment

            • #7

              #7

              Re : Prices Crashing in Greater Noida : CONFIRMED!

              kuch bhi bolte hain yaar news waale.......Do you believe that anyone is getting 2BHK in Paras seasons for 20Lakhs??

              No doubt price will stagnate on Expressway but I don't see any panic yet.....however situation in Noida Ext. & YEY is bit different.

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              • #8

                #8

                Re : Prices Crashing in Greater Noida : CONFIRMED!

                Originally posted by dk1986 View Post
                kuch bhi bolte hain yaar news waale.......Do you believe that anyone is getting 2BHK in Paras seasons for 20Lakhs??

                No doubt price will stagnate on Expressway but I don't see any panic yet.....however situation in Noida Ext. & YEY is bit different.
                I just called my agent to confirm the prices. He said they are quoting for 2bhk/2T, 795 sq. ft. for 2150000.00 all inclusive: and there is margin for further good discount if you come with your cheque book.
                They would certainly book for 20 lakh, but won't accept the price unless you show them the money!

                Comment

                • #9

                  #9

                  Re : Prices Crashing in Greater Noida : CONFIRMED!

                  Its just panic selling if it all its happening. Things will soon get bck to normal.
                  Some people will surely buy at a bit lower prices and can sell in 2-3 months maybe at better prices.

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                  • #10

                    #10

                    Re : Prices Crashing in Greater Noida : CONFIRMED!

                    must be at the 13+ floor

                    This price must be for 13-14+ floors...and might charge location PLC and floor PLC extra....along with IFMS and MDS....which might come to another ..

                    2704*795 = 21.50 Lcs

                    50 PLC
                    50 IFMS + MDS
                    another 50+ for floor PLC ...this again comes to approx 23 Lacs..... broker might have discounted their brorkrage ....earlier they were giving nothing much on Paras....

                    Originally posted by vkumar1 View Post
                    I just called my agent to confirm the prices. He said they are quoting for 2bhk/2T, 795 sq. ft. for 2150000.00 all inclusive: and there is margin for further good discount if you come with your cheque book.
                    They would certainly book for 20 lakh, but won't accept the price unless you show them the money!

                    Comment

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