Alert: Is un-necessary panic necessary?

The farmers agitation/High Court land acquisition denoticification are unfortunate events for GNoida/YEIDA. It is tough times for investors in NE/YEA. Since fear spreads faster than patience does, lots of investors even in Noida 7X, Eway are panicking for no legitimate reasons. Such Noidawalahs will eventually realize in the aftermath of current storm that the rates of their flats have suddenly gone up by Rs 500SFT just because genuine demand for legitimate properties would come back sooner than later. The Noida asectors (Eway, 7X, 1XX) are different because

1) The land was acquired between 1999-2005 under various governments (including M Yadav) and not during current regime. The acquisition of some sectors of NE was done in haste under emergency clause as BMW wanted her $$$ ASAP after becoming CM. Same is not true with Noida sectors as land was acquired in most sector under normal circumstances for RESIDENTIAL purposes and cannot be clubbed with identical emergency acquisition.

2) Apparently, no court case is pending as land is duly registered with builders in Noida. Even if we assume that court cases exists, the courts would have certainly given status quo in all these 10-12 years. No status quo order exists. If farmers can get their land in Eway/7X so can they get 10 Janpath (PM) and 7 RaceCourse Road (Rahul baba's resi) housed on farmers land acquired some decades back and could still come under litigation by same logic.

3) There are property agents who had found it difficult to sell Naharpar, some GGN sectors/other NCR region projects, due to overwhelming response to Noida/NE projects. So it serves them well to spread negative news for Noida. In any case we do not deal in property selling and neither suggest to buy property in the given circumstances but our endevour is to spread awareness to the new owners to see through the news flow smartly so that they don't lose money in panic.

In nutshell, plot/flat owners who have booked their property with private builders(Eway/ Sector 7X, 10X) need NOT panic un-necessarily provided the builder has done registry of land in their names. By law, registry can only be done on builders name if farmers have 'transferred their land rights to authorities in liu of present and/or future compensation. The current tactics of those farmers where they had already sold their land in past is nothing but manifestation of greed and 'árm-twisting tactics of jungle-raj (currently being shamelessly promoted by even the main-stream parties finding opportunity of baking 'votebank rotis' on someone else's fire).

Please also note following

In recent times, Yamuna Expressway plots had stolen thunder as far as plots in NCR are concerned. It now appears that some of the land on YE townships/sectors may not be in possession of Govt. It would be an understatement that the prices on YE private townships were crazy (15-30 K psy) for a region that cannot boast about any nearby school/hospital/jobs in the vicinity, but that did not deter investors to pour funds in the region. YE plots are a good 100 km return drive from Noida/DND. Considering the costs of toll Rs1.5 per km and petrol prices where they are now, it was a non-starter from day-one. A small needle can really puncture bloated area if not supported by genuine demand.

At the same time genuine plots of GNoida sectors (Eta/Site-C/Ansal Golf Link 2) and Ghaziabad (Wave City NH-24, RajNagar Ext)) begged for attention as their prices are not only less than YE but they can boast of better existing infrastructure/Schools/Jobs/metro.

The flats in Noida Ext were sold because they were cheapest in NCR. However, now legitimate areas in Noida (Sector 7x, eway), Ghaziabad (NH-24, NH-58), Crossing Republic and RajNagar Ext could see a rebound and genuine demand.

The NE areas where high court has denotified were never given possesion by authority to builders. This means if the registry has been done for the land by the builder, it is safe. Some of the better builders in Noida Ext impacted by denotification are planning to re-allocate flats in other legal areas wherever feasible as per their feelers.

The days of reasonably-priced plots and flats may be getting over. The land aquisition process would now become tougher and costly process at the expense of development and land-less service middle class.All political parties are bending over backwards to woo the farmers. No one really thinks about a huge middleclass who aspires to have reasonably-priced homes. The future trend would be that the builders have to buy their land directly from villagers (not through public service garb) at the market rate.

We suggest to tread with caution till UP election scheduled in May/June 2012. Happy investing
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