Land scarcity in Noida forces real estate companies like ATS Infra, The 3C Company and Earth Infra to explore Gurgaon - The Economic Times

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NEW DELHI: Scarcity of land in Uttar Pradesh's showpiece city of Noida and problems with acquisition of what is available are forcing property developers to explore options elsewhere, and rival Gurgaon is benefiting from it.

Real estate developers in Noida, such as ATS Infrastructure, The 3C Company and Earth Infrastructures, which have about 11 residential projects between them in the city and its surroundings, have either bought land or signed joint development agreements in Gurgaon over the last six to eight months.

The development underscores the problems the real estate sector has been facing in Noida since May this year when farmers' protests over low prices for their land snowballed into a political issue, leaving projects and buyers stranded.

"Noida Authority now has no land left in its bank to sell to developers," said Shiv Priya, executive director at Amrapali Developers, a real estate firm scouting for land in Gurgaon. According to property research firm PropEquity, Gurgaon registered a rise in sales of residential units at a time when the market was down in most parts of the country.

Home sales in Gurgaon in the July-September quarter rose 34% from the year-ago period while that in Noida dipped 36%. "The sentiment of buyers has been affected in Noida because of which sales have fallen," said Anshuman Magazine, managing director of CB Richard Ellis, a commercial real estate services firm.

Developer ATS recently bought a 14-acre plot of licensed land in Gurgaon's sector 109 forRs 150 crore and signed a joint development agreement with the Chintels group for another 10-acre plot in sector 106. Similarly, 3C Company has signed an agreement with Orris Infrastructure to jointly develop a 47-acre plot in Gurgaon's sector 89. 3C, which was active only in Noida until now, is planning a group housing project there.

Gurgaon, which is on the southwest of the national capital, had wooed the information technology industry with its gleaming buildings and swanky malls in the late 90s. "We also got a good feedback from many of our existing customers about setting up a project in Gurgaon, which is why we have signed a joint development agreement," said Brijesh Bhanote, director, sales and marketing, at 3C Company.

There is no new prime land available in Noida, he added. Anckur Srivasttava, chairman of property consultancy Gen-Real Property Advisers, said developers are waiting for the political uncertainty to reduce post state elections next year. Sales of residential apartments in Noida plunged after angry farmers started blocking housing projects.

The agitation, which started in a certain area of Greater Noida, became a larger movement with farmers across the city seeking higher compensation. The issue was settled after a high court ordered the city development authority to pay higher compensation to farmers.

The authority was also asked to return 5% of the farmland it had acquired after March 1997. Property firm Earth Infrastructures, which operated mainly in Noida, has started a residential project on a 10.5-acre plot it bought in Gurgaon's sector 112 earlier this year.
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  • so..now its confirmed 3C is coming in sec-89 of Gurgaon..

    News for MANOJa bhai...
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  • Not good for Noida projects...
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  • 3C is on launching spree but except LP and LB, has made no progress on rest of the projects...........
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  • That's what scares me... Trying to grow inorganically without base....

    Originally Posted by cookie
    3C is on launching spree but except LP and LB, has made no progress on rest of the projects...........
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  • I am sure 3C buyers will not like this. 3C is really having too much on their plates. One project at a time is a concept which now seems alien barring a very very few builders.
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  • Originally Posted by bhagore
    I am sure 3C buyers will not like this. 3C is really having too much on their plates. One project at a time is a concept which now seems alien barring a very very few builders.

    Many would have forgotten the 3C Lotus City on Yummuna expressway where Plots were sold out in 2 days..............hahahahaha
    Spared Man.
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  • Yea u r right , Eldeco is one of them....

    That's the reason ,i went for one of its Projects in Greater Noida
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  • It seems every builder wants to be big like JP..3C seems to be following the same trend..not realizing that the USP is small well managed projects with timely deliveries..
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  • I am afraid most members are not able to fairly analyze the significance of this news item. I myself had foreseen this scenario years back and aggresively sold my interests in Gurgaon and invested in Noida.

    Noida, with its limited land and ending borders with developed cities like Delhi, Ghaziabad and Greater Noida, was bound to face this situation sooner or later. Now wait for the next unprecedented great leap ahead: Steap rises in Noida prices forcing them to be almost equivalent to Delhi prices. This is bound to happen, and will happen sooner than expected!

    Gurgaon, on other hand, will keep on growing at its limited pace with infrastructure handicaps and dead ends at the borders.

    This is the last chance to invest in Noida. Prepare to pay more than 2X prices in 18 months time from now. Countdown has begun!
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  • Btw today morning i visited Gurgaon after long time...after a gap of almost 4 months. Infra is really really cramped. So many offices and so little infra in place. I simply dont understand why Noida is not offering more office spaces and aggressively woo the corporates!

    Why dont the state government wake up to the potential of Noida. :bab (22):
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  • Deepauls Bhai,
    2X price in 18 months with such a oversupply. I hope u are not kidding.Legal fratenity generally does not kid.
    DP
    Originally Posted by deepauls
    I am afraid most members are not able to fairly analyze the significance of this news item. I myself had foreseen this scenario years back and aggresively sold my interests in Gurgaon and invested in Noida.

    Noida, with its limited land and ending borders with developed cities like Delhi, Ghaziabad and Greater Noida, was bound to face this situation sooner or later. Now wait for the next unprecedented great leap ahead: Steap rises in Noida prices forcing them to be almost equivalent to Delhi prices. This is bound to happen, and will happen sooner than expected!

    Gurgaon, on other hand, will keep on growing at its limited pace with infrastructure handicaps and dead ends at the borders.

    This is the last chance to invest in Noida. Prepare to pay more than 2X prices in 18 months time from now. Countdown has begun!
    CommentQuote
  • Originally Posted by commener
    Deepauls Bhai,
    2X price in 18 months with such a oversupply. I hope u are not kidding.Legal fratenity generally does not kid.
    DP


    Not really kidding, it is just possible keeping in view the current prices (4000 psf average) which already has discounted the oversupply factor.

    Oversupply, on other hand, will help appreciation in hiding which will bring mega economy at Noida's doorsteps.
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  • hope your predictions come true.


    Originally Posted by deepauls
    Not really kidding, it is just possible keeping in view the current prices (4000 psf average) which already has discounted the oversupply factor.

    Oversupply, on other hand, will help appreciation in hiding which will bring mega economy at Noida's doorsteps.
    CommentQuote
  • Originally Posted by commener
    hope your predictions come true.


    Commoner bhai, rest assured, it will come true.

    Besides being a lawyer, I also am an alumnus of Delhi School of Economics and follow economic activities with very keen interest.
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  • Originally Posted by deepauls

    This is the last chance to invest in Noida. Prepare to pay more than 2X prices in 18 months time from now. Countdown has begun!


    I agree that Noida's better times have come now (and not gone the way noted in the newspaper item). The way BMW started to sell Noida land before the election, the prices did go depressed 2 years back. But everyone knew Noida has limited land and now the balance land being diverted to give more land to farmers, Noida is done with major residential supply.
    I have come across many people from UP/Bihar/North India in general with "khaandaani" business/ assets or 1st class babus- buying in Noida to give their children better education (Gurgaon somehow does not figure in their preference).
    The Noida rates will certainly match Gurgaon, if not go higher.
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