TIME TO INVEST IN THE TWIN CITIES

It is the best time to invest in Noida-Greater Noida. As the new land acquisition policy of the UP government will push the real estate prices up, this could well be a dream investment for those who enter the market at this juncture. A K TIWARY writes


If you plan to buy property in the twin cities of Noida-Greater Noida, do not delay. It is the best time to invest as the new land acquisition policy announced by the UP government recently, promises an investor's dream being realized. The property rates in the twin cities could again skyrocket, thanks to the hefty compensation package announced for farmers.

Under the new policy, undoubtedly, authorities will have to face an extra burden, as developing authorities will be forced to hike the existing rate. It is believed that the district administration is also planning to revise the circle rates (as a projected 25-30% hike in existing rates). Such a projected property hike will make both Gurgaon and Faridabad comparatively cheaper to live in. However, in terms of infrastructure like the roads, sewers, water and connectivity, Noida-Greater Noida will always be the best.

In the new acquisition policy, developers can acquire land directly from farmers and acquisitions can only happen with the mutual consent of 70% of the farmers in a given area. In case of disagreement, the project would be reviewed. In the affected villages where land has been acquired, the developer would have to construct a Kisan Bhavan as well as a model school.

Rakesh Yadav, managing director of Antriksh Group says: "The new policy has been framed to safeguard the interest of farmers. Terming the new policy a historic step, effort would be made to get it implemented at the national level as the Union government has also planned to bring a land acquisition bill very soon. The landacquisition policy of UP is even better than the ones being implemented in Congress-ruled states like Haryana as it covers both farmers and developers interest."

Anil Sharma, CMD of Amrapali Group says: "The whole idea of a majority of villagers endorsing acquisition may act as a non-starter for acquisition due to differing political and social agendas. Even in cases where the government may actually need land to develop some public utility structure or industrial estate, this law may impede their progress. Instead, farmers should be given more generous compensation and should they choose to forgo their right to ask for higher compensation in court, they should be immediately given developed plots in developed sectors allowing them to profit from the development around them."

Naveen Raheja, managing director of the Raheja Group, says: "The land acquisition policy that sprang up in UP after the agitation by farmers has shown some hope but the fact remains that for big developers, UP only means Ghaziabad, Noida and Greater Noida. Apart from this, UP has to improve its image linked to poor law and order situation. This stigma gives it a negative perception in comparison to other states. Not only the land policy, there are so many other problems that UP has to resolve."

Rahul Gaur, the CMD of Brys Group, says: "Planned implementation and fast progress is synonymous with UP. It is believed in the real estate circuit that under the prevailing circumstances, implementation of all the mega plans for UP would see light of day in the next few years. It is clear that those areas where land has already been acquired and compensation distributed to farmers will be out of the ambit of new land acquisition policy."

Harmit Chawla, the managing director of H Corp Realty Pvt Ltd, says: "The MNCs/TNCs have not shifted their base anywhere in UP as can be seen in the case of Gurgaon. ITeS/BPOs have also coldshouldered UP when compared to other upcoming cities. The circle rates are more generous in Gurgaon leading to a better realization for the farmer. A farmer can actually buy more tracts of land using that money if he chooses. Also, the opportunity to ask for a higher compensation from court remains with him even after accepting a compensation cheque. In UP, the circle rates should be brought more in line with the actual transaction values to get it reflected in compensation cheques."

"It is good that this policy has sought time-linked completion of projects. This is the most important thing for real estate development anywhere. All plans under implementation ought to be time-linked or time-bound with penalty-linked deadlines. A few things that need urgent attention are law and order to meet security needs, removal of bureaucratic delays, dismantling of development authorities which regulate the industry and delay progress, public-private partnership, single-window clearances for the real estate and construction industry, power, water and sewerage to be developed to meet the future demands," Manoj Gaur, of JP Group, says.

Prashant Tiwari, the managing director of Prateek Group, says: "UP has been definitely trying to compete in the last couple of years by bringing in development schemes through integrated townships and high-tech cities. But UP's urban development policies should be more favourable to the developers. They should be more stable and well defined. Cities like Moradabad, Lucknow, Meerut, Kanpur, Varanasi, Allahabad, etc, have good potential for real estate development."

Land acquisition policy of Uttar Pradesh

Builders and developers can talk to the farmers directly. Those farmers who do not wish to claim the compensation in cash will have an option where 16% (plus 7% for Pustaini) of the total area of the acquired land will be returned free of cost after development. Such land shall be transferable. Fifty per cent of the developed land given to the land owner shall be for residential use and 50% for non-residential use (like industrial, institutional, commercial or mixed use).
The body/undertaking or authority concerned shall itself determine the relative percentage of non-residential use. The land owner shall have the option of retaining a part of the 16% developed land given to him and obtain cash compensation for the remaining land on the basis of mutual agreement. The rates of cash compensation shall be declared by the acquiring body at the beginning of the project. The land given to the landowner shall be free from development fee or land-use change fee due to the development authority.
In addition to the above package determined by the mutual consent, the following benefits shall also be available to landowners.
As annuity
Every landowner, whose land has been acquired, shall be given annuity at Rs 23,000 per acre per year in addition to the compensation amount. The amount of annuity shall be increased by Rs 800 per acre every year. The landowner, who does not wish to avail this annuity, shall be given Rs 2,76,000 per acre in lump sum as rehabilitation subsidy.
Land acquisition policy of
Haryana
Builders and Developers can purchase land directly from farmers. For this, builders/developers have to obtain an NOC from HUDA (Haryana Urban Development Authority). Like in UP, the state government will not interfere in the deals being negotiated with the owners of the land.
The landowners will be paid annuity for 33 years apart from the usual land compensation. The amount of annuity will be Rs 18,000 per acre per annum.
Annuity of Rs 15,000 will be increased by a fixed sum of Rs 500 per year.
In respect of land acquired as per policy for setting up of Special Economic Zones/ Technology Cities/ Technology Parks, in addition to rehabilitation and resettlement package, a sum of Rs 30,000 per acre per annum will be paid for a period of 33 years by private developers and this annuity will be increased by Rs 1,000 every year.

QUICK BITES

IN THE NEW ACQUISITION POLICY, DEVELOPERS CAN ACQUIRE LAND DIRECTLY FROM FARMERS AND ACQUISITIONS CAN ONLY HAPPEN WITH THE CONSENT OF 70% OF THE FARMERS IN A GIVEN AREA
THOSE AREAS, WHERE LAND HAS ALREADY BEEN ACQUIRED AND COMPENSATION DISTRIBUTED TO FARMERS, WILL BE OUT OF THE AMBIT OF NEW LAND ACQUISITION POLICY PROPOSED BY THE CENTRAL GOVERNMENT
Read more
Reply
3 Replies
Sort by :Filter by :
  • NOIDA WELL CONNECTED TO DELHI

    Noida has climbed to the top of the charts in the NCR’s realty scene with the introduction of the Metro line and major road connectivity enhancing its image among homebuyer and investors. ABHIGYAN writes

    From being a distant town vis-avis Delhi and the NCR where people used to resist investing to a most sought-after destination, Noida has come a long way. The introduction of the Metro line and major road connectivity enhanced the image of Noida further.

    The effect of the Metro was evident when big developers like DLF, Unitech, Wave City and Logics, etc, entered the Noida market and launched project in Sectors 59, 62, 18, City Centre and Sector 32, which are considered the IT and commercial sectors.

    "The infrastructure in Noida is better in terms of roads, water, sewerage, electricity, parks, etc, as compared to other NCR towns. Connectivity to Noida is better than for Gurgaon because of the toll bridge which enables one to reach Noida in just 5-10 minutes from South Delhi, whereas it takes 40-45 minutes to reach Gurgaon from South Delhi," Ram Gopal Gupta, an ex-chief town planner of DDA, says.

    Rama Raman, former chief executive officer of Noida Authority (now CEO of GNIDA), says: "More than 65% of the area of Greater Noida comes under green cover, making its environment relatively clean; no wonder it is the first choice of those who want to live in an eco-friendly area. Also, a sub-city is being developed. Even industries causing pollution are prohibited here. For those granted permission, the authority not only ensures speedy clearance and approvals but also incentives to promote early commissioning of projects due to which the city has become a favourite choice of domestic and multi-national investors."

    Commercial activities in Noida

    When it comes to commercial activity in Noida, only one place comes to mind - Noida's Sector 18. Generation Next awaits the weekends to throng the place, which is vibrant with commercial activity. It caters to all the needs of people from shopping to food and entertainment. That is a reason that malls like Centrestage Mall and Great India Place get the attention which is the envy of others of their ilk. Developers also realize the potential of the place and are still interested to raise projects here. The 37-floorhigh Wave One - an integrated complex having retail, offices and cinemas - is coming up here on 16,950 sq metres, which is surrounded by Centrestage Mall and Radisson.

    R K Jain, the executive director of Wave City, says: "In the recent past, Noida's Sector 18 has seen frenetic development and soon, it will become a hotspot of commercial activity. Some of the malls built here changed the way people shop and spend their weekends at the entertainment parks. The roads have been re-laid and the traffic has become signal-free. The whole look of this area is not a grain lesser than what we experience abroad."

    Then there is Wave 1st Silver Tower located at the intersection of major access roads of Sector 18 market in Noida. The total floor area that the project offers is approximately 2.3 lakh sq ft of which 1.25 lakh sq ft will be for offices and 74,000 sq ft for retail. The tower will have 11 storeys and the project is near completion.

    Express development

    In this journey, one place in Noida that has benefitted most is the Noida Expressway. Since the time the expressway became operational, the real estate around the stretch has seen tremendous response. Noida-Greater Noida Expressway is witnessing the fastest pace of construction activity in the whole of Noida. Some of the sectors that are catering to the housing demand are 93, 119, 120, 121, 128, 134, 137, 151 & 168.

    Projects coming along the expressway are reaping huge dividends owing to their proximity to good infrastructure and excellent connectivity. Catering to all segments from affordable to high-end, the stretch has almost all the reputed developers trying to gain attention of buyers and win their confidence.

    In Sector 137, at Paras Tierra, one can see the fast-paced activity taking place, and it has been only 10 months since the launch of the project. This affordable luxury project is being built over 30 acres and has apartment sizes ranging between 825 sq ft and 2,900 sq ft in 2BHK, 3BHK, 4BHK and low-rise premium floor options. There are 2,800 apartments on offer and a majority of the apartments are open on two sides. Paras Tierea has a locational edge over other new projects in the vicinity as it is located close to the Noida Expressway. Tierea is also surrounded by markets, hospitals and schools. And the place where India's first Formula 1 Grand Prix will take place in October is not far from the project. Another project by the company is Paras Seasons, in Sector 168. It is being developed over 7.5 acres and offers 900 residential units. It is an affordable premium housing project in Sector 168, Noida.

    Ajnara India Ltd is developing Daffodil here. The project has 1,100 residential units with the option of 2-, 3- & 4BHKs whose sizes range between 945sq ft and 1,695 sq ft. The starting price of the flats is Rs 24 lakh. Logix Blossom County is spread over 25 acres, Panchsheel Exotica has Fresco in Noida's Sector 137, and Paramount Floraville. People are investing here because they are assured of great infrastructure along with world-class construction and facilities.

    QUICK BITES

    THE INFRASTRUCTURE IN NOIDA IS BETTER IN TERMS OF ROADS, WATER, SEWERAGE, ELECTRICITY, PARKS, ETC, AS COMPARED TO OTHER NCR TOWNS. CONNECTIVITY TO NOIDA IS BETTER THAN FOR GURGAON BECAUSE OF THE TOLL BRIDGE WHICH ENABLES ONE TO REACH NOIDA IN JUST 5-10 MINUTES FROM SOUTH DELHI, WHEREAS IT TAKES 40-45 MINUTES TO REACH GURGAON FROM SOUTH DELHI
    CommentQuote
  • TOLL TAX ON NOIDAGREATER NOIDA EXPRESSWAY

    With the commissioning of Yamuna Expressway, the toll regimen will be made applicable on Noida-Greater Noida Expressway as well. PUNITA TIWARY reports

    The Yamuna Expressway is set to be operational soon and toll plazas are now being installed along the route. A notification has already been issued for this purpose. But there is uncertainty whether toll tax will be imposed on Noida-Greater Noida Expressway.

    Sources in the authority say that with the commissioning of Yamuna Expressway, the toll regimen will be made applicable on Noida-Greater Noida Expressway as well. JP Group, a construction company, will pay the cost of its construction to the Noida Authority as per the terms and conditions of the agreement.

    Under the agreement, the JP Group will receive the toll tax for the next 36 years on the expressway. An agreement for this was signed by JP Group in 2003. It was based on the offers invited from interested parties of national and international repute for preparation of a techno-economic feasibility
    report (TEFR) and a detailed project report (DPR).

    The concessionaire will be entitled during the concession period to collect toll fees from users of the expressway at each toll plaza. Such fee shall, however, not exceed the fee as notified by a state government. The location of the toll plazas will be decided by the concessionaire.

    According to the MoU, at the time of commissioning of the Yamuna Expressway, Noida-Greater Noida Expressway will also be handed over to JP Group.

    With the commissioning of Yamuna Expressway, users of this highway will have to pay toll tax and simultaneously a toll tax will become applicable on use of Noida-Greater Noida Expressway as well. To collect the toll tax, out of five plazas, one is being constructed near Kundli on the expressway, which will ultimately be made into an eight-lane expressway against the present six-lane one.

    The Noida and Greater Noida authorities jointly constructed the 23kmlong Noida-Greater Noida Expressway in 2000, at a cost of Rs 18 crore. The rates of toll tax on the expressway have already been decided along with the toll tax rates on Yamuna Expressway. Toll tax will be payable on the interchange and over bridges.

    Commuters will have to pay toll tax at four places from Noida to Agra. Each plaza will receive toll tax for its own segment only, officials clarified. The area under development and parallel to the Yamuna Expressway has a lot of potential to emerge as a preferred destination for thousands of families who wish to buy their homes here. The Yamuna Zone is gearing up to provide residents with all the required social infrastructure and facilities.

    Proposed Toll Taxes

    Vehicle rate per km: Light commercial and mini buses:
    130 paise/km
    Car, jeep and van (non-commercial): 80 paise/km Bus and truck: Rs 2.75/km Over-sized vehicles (8-wheelers) Rs 5.25/km Heavy vehicles (3- to 6-wheelers) Rs 4.30/km

    Now ready to pay:

    From Noida to Greater Noida up to 20km: For car, jeep and van Rs 16 and up
    to Agra (165km) Rs 132
    From Noida to Greater Noida up to 20km: For bus and truck Rs 55 and up to Agra (165km) Rs 453.75

    Proposed Toll Plazas

    Five Toll Plazas have been proposed
    Noida’s entry point
    Greater Noida's entry point (zero point, Pari Cowk) Zero Point-Jewar (Mehandipur Banger)
    Jewar-Tappal (Jewar Banger) Tappal-Mathura (Jewar) Matura-Agra (Hajipur)

    QUICK BITES
    THE NOIDA AND GREATER NOIDA AUTHORITIES JOINTLY CONSTRUCTED THE 23KM-LONG NOIDA-GREATER NOIDA EXPRESSWAY IN 2000, AT A COST OF RS 18 CRORE
    THE RATES OF TOLL TAX ON THE EXPRESSWAY HAVE ALREADY BEEN DECIDED ALONG WITH THE TOLL TAX RATES ON YAMUNA EXPRESSWAY. TOLL TAX WILL BE PAYABLE ON THE INTERCHANGE AND OVER BRIDGES
    CommentQuote
  • Yesterday and Today all Property Classified of TOI is only filled by NE / GN / Noida / YEW Future Development. More than 12 full pages advertisement only in 2 days. Authority is spending a lot for the advertisement of these area but it was more better if they spend this money to increase farmers compensations because all NCR public know about this area a lot ie Development as well as Disputes also.
    CommentQuote