Noida's loss is Gurgaon's gain
Business Standard
Ranju Sarkar / New Delhi July 10, 2011, 0:09 IST

Once a hot property for realty business, Noida Extension has ceased to be of interest to any dealer or buyer. Within days of the Supreme Court canceling construction of residential flats in the area, which it said was meant to be an industrial hub, potential buyers are looking towards other satellites of Delhi – Gurgaon, Faridabad, Ghaziabad.

Real estate brokers say enquiries for residential projects in Gurgaon and Faridabad have gained substantial spurt. They say the crisis in Noida Extension is beginning to mar consumer sentiment in Noida as well.

‘‘We have done more sales in Gurgaon in the last 11 days than in other areas. This also coincides with new launches from Vatika and M3M, and plot sales by DLF. Customers today feel more secure about buying in Gurgaon than Noida,’’ said Samarjit Singh, MD, Agni Property Services, a real estate services firm.

Enquiries have dwindled for Noida Extension since the Allahabad HC order on Sahberi came in mid-May. Since then, brokers in Noida have been aggressively promoting projects on the Noida Expressway as projects with safe land title.

But brokers now suspect the crisis will have an impact on overall Noida.
‘‘Our call centre gets about 36,000 calls a day, of which 3,000-4,000 calls were for affordable housing in Noida. These have dropped to 300-400 a day. The level of queries have gone up for Gurgaon and Faridabad. This will open up Faridabad and new areas in Gurgaon,’’ said Singh.

But there is a problem. Gurgaon is an entirely different market. “You can’t get a 2 BHK in Gurgaon for less than Rs 60 lakh and only 10 per cent of the stock is 2 BHK (1,300-1,400 sq ft),” says Sunny Katyal, director (marketing) at brokerage firm Investors Clinic. Even in new Gurgaon, opposite Manesar, prices for a 2 BHK units are priced at Rs 72 lakh.

Developers sold flats in Noida Extension for Rs 13 lakh (for a 1 BHK) to Rs 20 lakh (for a 2 BHK). These prices are more comparable with prices in Ghaziabad, which has also seen an increase in investor queries or prices in Pari Chowk in Greater Noida, but not Gurgaon. ‘‘Around 10-20 per cent of the buyers, who can’t wait for a home, will settle for Ghaziabad, with some compromise on location,” said Katyal.

Prices in Faridabad are more competitive (Rs 20-40 lakh) and will attract investors.
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  • This had to happen as safety of your investment is the prime importance for most people. Gurgaon will become even more expensive and so are the near by areas around it. Ghaziabad affordable areas like Raj Nagar Extension might gain from it too.
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  • Impact on GGN/FBD of SC order on Greater Noida

    Originally Posted by tinesha
    Noida's loss is Gurgaon's gain
    Business Standard
    Ranju Sarkar / New Delhi July 10, 2011, 0:09 IST

    Once a hot property for realty business, Noida Extension has ceased to be of interest to any dealer or buyer. Within days of the Supreme Court canceling construction of residential flats in the area, which it said was meant to be an industrial hub, potential buyers are looking towards other satellites of Delhi – Gurgaon, Faridabad, Ghaziabad.

    Real estate brokers say enquiries for residential projects in Gurgaon and Faridabad have gained substantial spurt. They say the crisis in Noida Extension is beginning to mar consumer sentiment in Noida as well.

    ‘‘We have done more sales in Gurgaon in the last 11 days than in other areas. This also coincides with new launches from Vatika and M3M, and plot sales by DLF. Customers today feel more secure about buying in Gurgaon than Noida,’’ said Samarjit Singh, MD, Agni Property Services, a real estate services firm.

    Enquiries have dwindled for Noida Extension since the Allahabad HC order on Sahberi came in mid-May. Since then, brokers in Noida have been aggressively promoting projects on the Noida Expressway as projects with safe land title.

    But brokers now suspect the crisis will have an impact on overall Noida.
    ‘‘Our call centre gets about 36,000 calls a day, of which 3,000-4,000 calls were for affordable housing in Noida. These have dropped to 300-400 a day. The level of queries have gone up for Gurgaon and Faridabad. This will open up Faridabad and new areas in Gurgaon,’’ said Singh.

    But there is a problem. Gurgaon is an entirely different market. “You can’t get a 2 BHK in Gurgaon for less than Rs 60 lakh and only 10 per cent of the stock is 2 BHK (1,300-1,400 sq ft),” says Sunny Katyal, director (marketing) at brokerage firm Investors Clinic. Even in new Gurgaon, opposite Manesar, prices for a 2 BHK units are priced at Rs 72 lakh.

    Developers sold flats in Noida Extension for Rs 13 lakh (for a 1 BHK) to Rs 20 lakh (for a 2 BHK). These prices are more comparable with prices in Ghaziabad, which has also seen an increase in investor queries or prices in Pari Chowk in Greater Noida, but not Gurgaon. ‘‘Around 10-20 per cent of the buyers, who can’t wait for a home, will settle for Ghaziabad, with some compromise on location,” said Katyal.

    Prices in Faridabad are more competitive (Rs 20-40 lakh) and will attract investors.


    Hi
    Greetings

    This is a great share and gives a very practical view of the situation. Prices in GGN for under construction and new launches are phenominally higher than RTM options in Gzb and Fbd..
    Great share.
    More than the fact that prices in Fbd and Ghz have actually started moving I am amazed at the fact that we have a marketing company receiving 36000 calls per day regarding housing requirements!!!

    Reading between the lines, since RE for end user is very emotional and security(Money and Self) are the key aspect, drift will be more towards Haryana rather than Gzb due to Organised crime of UP and recent land ruckus. As compared land rights are clear in Haryana and polity is not as criminalised, infra is comparable or better.
    Obviously after seeing about 5000 unit allotees suffereing is a big lesson for a long time. Though public memory is short but these wounds would not fill in that fast..

    Cheers
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  • I think GZB will be biggest beneficiary followed by Faridabad and GGN. Infra is no issue in Gzb (i think its better than few areas in faridabad and GGN), and for organised crime in UP, people who were booking in Noida Ext region were already aware of this and were going ahead with this, so it again becomes a non issue.

    Biggest advantage of GZB is that its nearest to Delhi and affordable
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  • Its not crime, but safety of your money. I assume all the safe areas around NCr would get benefit, be it Ghazbdm Fbd or GGN. Buyers will distribute according to their purchasing power.
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  • GN near pari chock also getting inc in land rate
    dealer now asking 20% more
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  • I guess everything would increase because even though prices in GGN might be much higher than Gr. Noida but now with increased price in GZB,FBD people who were trying to buy consider buying at GGN
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  • Somebody looking at cheaper options ( which r also close to his place of work ), would look at Ghaziabad & to some extent, Faridabad, Dharudhera/Bhiwadi/Manesar, as better alternatives ( especially true, for end users ). GGN has not much to offer in the lower price range .

    Originally Posted by gvipin
    I guess everything would increase because even though prices in GGN might be much higher than Gr. Noida but now with increased price in GZB,FBD people who were trying to buy consider buying at GGN
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  • Property prices in Greater Noida to increase sharply: GNIDA



    NEW DELHI: Greater Noida Industrial Development Authority (GNIDA) on Friday said consumers will have to pay much more for properties in the region in future after the Supreme Court disallowed acquisition of 176 hectares of land from farmers.
    The authority also said it will return the land to the affected farmers as per the apex court ruling and will strictly follow the new land acquisition policy of Uttar Pradesh in acquiring land for future projects.
    "After this court order, we will acquire all future land keeping in mind the market price and hence will have to pay higher land prices. Automatically, sale prices will increase and hence end consumers will be impacted severely," GNIDA Chief Executive Officer Rama Raman said.



    The authority will follow the court orders in "letter and spirit" and will return the land to farmers, he added.
    "Initially, we will return the land as per the orders. We will see later how we can proceed in this respect after going through the detail judgement," Raman said.
    He, however, did not specify what GNIDA will do to compensate the developers, but said it will acquire land at regular intervals "as and when necessary".
    On Wednesday, the Supreme Court had upheld a verdict of the Allahabad High Court that quashed acquisition of 176 hectares of land from farmers in Greater Noida saying the authorities were "sub-serving" private builders in the name of public interest.
    Raman, however, said real estate development in the area is unlikely to get affected due to the judgement.
    "I don't think it will affect much, but due to procedural steps, we may only witness some delays," he added.
    Meanwhile, real estate analysts said the Supreme Court decision is unlikely to affect much in the future, but rather it will help all stakeholders to approach cautiously.
    "Demand will not be impacted much in the region as developers are taking various proactive measures to address customers' concerns.
    "From now onwards, all future transactions will see double verifications from all parties like consumers, developers and the government. It is a good thing for the sector to avoid any controversy," Jones Lang LaSalle Chief Executive Officer (Operations) Santhosh Kumar said.
    He said developers may feel some impact in the near future as they are either refunding the money or giving alternate locations to consumers, who had booked their properties in the disputed area.
    Expressing similar sentiments, Cushman & Wakefield India Director (Residential Services) Shveta Jain said there will not be any significant impact to the existing customers as developers are relocating them to other projects in the area.




    Property prices in Greater Noida to increase sharply: GNIDA - Economic Times

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  • Hi all,

    Please note that there is already a thread running on https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/16072-is-noida-s-loss-gurgaon-s-gain?t=18313
    We prefer not to have parallel threads running on the same topic as this dilutes the information shared. Request you all to repost your comments on the above posted link.

    Thank you
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