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The Noida real estate market is expected to see a big uptake in the next few months after the government shrank the eco-sensitive zone around the Okhla bird sanctuary.
According to data from real estate firm PropEquity, home prices in Noida came down by just 4.6 per cent over the last two years to Rs 5,288 per sq ft since the National Green Tribunal ordered a halt to construction in 2013. Since the launch of projects in 2011, prices in Noida have appreciated by 60 per cent.
Sales fell drastically by about 80 per cent in the last two years to 1,705 units, but experts believe the market will revive as projects are completed. New project launches also dipped to two in 2015-16 till now from 34 in 2013-14.
Anshuman Magazine, chairman and managing director, CBRE South Asia, said, "The location will see more housing sales along with office occupancy and retail space leasing in the coming months. With the real estate market opening up once more in the area, home buyer demand will pick up as well. With interest rates going down and the government focusing on infrastructure development, this might be good news for the realty market in Noida."
Amit Modi, vice-president, CREDAI Western UP, said, "Ambiguity on the eco-sensitive zone has already cost the local economy more than Rs 2,000 crore, with over 30,000 home buyers awaiting possession of their apartments and about 50,000 possessions on the anvil by the end of this year." The move will also see a rise in property registrations in the area, which had declined by nearly 30 per cent, year on year.
As many as 50 residential projects, impacting about 55,000 home buyers, received a breather on August 18 when the government approved reduction of the eco-sensitive zone around the Okhla bird sanctuary.
The environment ministry's draft notification, issued last year, was cleared by the government today, which said the eco-sensitive zone would be considered up to 100 metres from the eastern, western and southern boundaries and up to 1.27 km from the northern boundary of the sanctuary.
The projects were stuck after a tribunal order in October 2013 ordering a halt in construction in a radius of 10 km from the Okhla bird sanctuary and restraining authorities from issuing completion certificates within the eco-sensitive zone till clearance from the National Board for Wildlife was obtained. The tribunal also directed the Centre to demarcate the eco-sensitive zone around the sanctuary after considering fresh proposals from Uttar Pradesh, Delhi and Haryana. A final notification will be out within a week.
Once the notification is issued, the government will allow home buyers outside the zone to acquire occupancy certificates for their flats.
Jaypee, DLF, ATS, 3C and Supertech were among the developers whose projects were affected by the tribunal order.
