Realty takes hit as investors shy away in Noida, Gr Noida
The developers and the authorities, that look after the whole affair including construction activities and delivery of projects, have decided to address the issue of most of the projects whose possessions have been scheduled after December, 2015.
Notably, delivery of nearly five lakh flats of over 250 projects are round the corner but the realty sector has been facing the apathy of investors and buyers due to delays in project delivery, oversupply and lack of infrastructure.
As per the report, all three authorities — NOIDA, Greater NOIDA and YEIDA have asked the builders to ensure possession of flats to the buyers within one or two years. They have also been asked to ‘decode recession’ by finding out reasons, fixing responsibilities and getting solutions to the ongoing crisis that has led to the decline of property rates up to 15 <g data-gr-id="35">per cent</g> in the past one year.
The builders, who are carrying out scores of projects in Greater Noida (West), have been ordered to deliver projects without making unnecessary delays. Sources claimed that a meeting in this regard was also held by top officials with the real estate body where the recession was discussed.
“After a series of debacles including the Patwari row, issues of eco-sensitive zones around Okhla Bird Sanctuary and Supertech’s Emerald Court matter, the interest of investors has gone down. The authorities, who allowed construction without considering litigation matters, also ignored the sentiments of the buyers that went against the industry. Now, the situation is that despite offering investment on low rates, people are reluctant,” said a senior official.
<g data-gr-id="37">Indrish</g> Gupta, co-founder of Noida Extension Flat Owners Welfare Association (NEFOWA) which represents more than 25,000 buyers said that the earlier mistakes of the real estate body and local authorities have deepened the crisis.
“Litigation of land and buyers’ concerns were totally ignored during the early phases. The builders, after ending problems with the farmers, announced an abnormal hike in land rates which too backfired,” Gupta said.
In addition to this, property consultants have advised home buyers to avoid certain locations, including Noida Extension, due to delays in project delivery, oversupply, speculation and lack of infrastructure.
JLL India has declared Greater Noida (West) and other regions as ‘high-caution’ areas.
“The National Capital Region (NCR) has some locations that buyers are best advised to avoid.
Various issues like delays in delivery, oversupply, speculation and infrastructure deficit have been plaguing these markets, rendering them unsuitable for first-time home purchase,” a JLL India official had informed earlier this week.