Status as on: 28/03/21
Ready-to-move-in apartments offered by industrial development authorities in Noida and Greater Noida are scrambling to find homebuyers, indicating a general slowdown in the local real estate sector. Since last 6-months, the authorities have only been able to sell a handful of apartments.
During the current fiscal year, the Noida Authority and the Greater Noida Authority floated a total of around 1,800 flats through various schemes and offers. Despite their best efforts, only 45 or so flats have been sold so far. The situation in the twin cities is completely contradictory to the situation in Delhi.
Earlier this year, the Delhi Development Authority (DDA) offered 1,354 flats. After paying the registration fees, more than 22,000 homebuyers lined up to get DDA apartments. The question, according to market analysts, is with the price points and ticket sizes of the units that the two authorities are selling.
A real estate analytics company has found that due to a lack of confidence in developers in Greater Noida and Noida, the two authorities’ schemes should have received a same response as in Delhi. However, the authorities are demanding a heavy price, which buyers find unreasonable.
Buyers who have been looking for a home agreed with the experts assessment.
In August last year, the Noida Authority floated 355 units in ground plus three storey towers, while the Greater Noida Authority is offering 1,480 apartments. The Greater Noida Authority initiated an open-ended scheme, while the Noida Authority’s scheme was completed in less than two months.
Despite offering low-income, middle-income, and higher-income types across multiple sectors, Noida Authority officials reported that not even a flat could be sold. Noida Authority has fixed the cost of MIG flat in Sector 62, which is around 1,000 square feet for Rs 66.44 Lakh, while its HIG flat in Sector 99, which is 1,650 square feet costs Rs 1.62 crore.
Greater Noida Authority has been providing different types of flats like 1BHK, 2BHK and 3BHK across various sectors. Though 3BHKs (carpet area of 1,103 sq ft) are priced around Rs 84 Lakh and 2BHKs (carpet area of 727 sq ft) are priced around Rs 52 Lakh. Buyers would have to pay a considerable amount of lease rent in addition to the purchase price of the flat.
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