Real estate developers expect home prices to rise by at least 25 per cent in Noida Extension as the government's approval to Greater Noida master plan has paved the way for the start of construction, which was stalled for over a year in the area.
The National Capital Region Planning Board (NCRPB) has given its nod for the master plan, which was made mandatory by a court order in October 2011 for any construction activity in Noida Extension — a newly proposed residential hub in the NCR.
About 2.5 lakh homes have already been launched, of which about 1.5 lakh were sold even before construction work stopped about a year ago on farmers protest.
"The housing demand in Noida Extension is going to be very high after NCRPB approval, while supply is very weak. Prices are bound to increase because of various factors, such as hike in compensation to farmers and rising input cost," Amrapali Chairman and Managing Director Anil Sharma told PTI.
Sharma said the prices would go up by about 25 per cent. "Prices were Rs 2,100-2,200 a sq ft in this region last year. Now we expect those to go up to about Rs 2,600 per sq ft".
Another major developer in this area Supertech also felt construction would start by September 15 and prices would go up by 35-40 per cent compared to last year.
"We were selling homes at Rs 2,300 per sq ft in May last year when farmers’ protest started on the land acquisition issue. Now, we will launch projects at Rs 3,200 per sq ft in Noida Extension," Supertech Chairman R K Arora said.
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The cost of construction materials and interest rate have gone up sharply in the last one and a half years, Arora added.
Property consultant Jones Lang LaSalle (JLL) India is also of the view prices would go up in Noida Extension, but rates would still be cheaper than Noida and Greater Noida.
"This area has been considered as the region of affordable homes. A lot of burden has to be borne by the developers. So there will be a little bit of price increase," JLL India CEO (Operations) Santosh Kumar said, but declined to give any percentage.
He noted demand would be much higher and there would be an opportunity for both investors as well as end-users.