Demonetisation to cause drop in property rates in Noida & Ghaziabad

The flushing out of high denomination notes may lead to a dip in property rates in Noida and Ghaziabad as realty rates across the two districts are likely to be revised soon.

The real estate firms and the developers are bracing up for at least next couple of months which may prove critical for the property business. Buyers largely use black money to pay in cash and avoid property transaction taxes or stamp duty.

Jatin Chakerverty, a real estate consultant said “The lower liquidity may hamper the construction progress as the buyers of under construction properties will face difficulties in paying the advances and part payments leading to the lower collection by builders which may lead to the cut in prices or the builders might introduce new attractive schemes to the buyers to boost up the sale”.

“The impact will be more on the small or marginal developers” Chakerverty added. 

The residential flats in Noida are categorized as Boulder’s flats, authority flats for economically weaker sections and the shramik kunj flats. The builder’s flats in Noida range from Rs 2500 to Rs 6000 per sqaure feet. The EWS flats range from Rs 2500 to Rs 3000 per sqaure feet while the shramik kunj flats are available between Rs 2200 and Rs 2500 per square feet.

The residential plots in Noida range from Rs 40,000 to Rs 1, 10,000 depending on the width of the road they are located. The Noida Extension and Greater Noida West area is the hub for builders with lots of complete and under construction projects. The property prices in the locality range from Rs 2600 to Rs 4000 per square feet while the property can be leased at Rs 8 to Rs 10 per square feet. The commercial property in this area is available at around Rs 4000 per square feet. 

As per surveys and records, the builder’s flat in central Noida region such as sector 19, 21, 25, 12, 37, 44, 50, 51, 61, 93, 76 and 82 varies from Rs 4000 to Rs 6000 per square feet while the residential property on rent in these sectors varies from Rs 9 to Rs 20 per square feet.  

The residential sectors nearby metro stations such as Golf Course, Botanical Garden and Sector 18 witness a higher property rates ranging from Rs 7500 to Rs 8500 per square feet.

The Noida-Greater Noida expressway connects lots of Institutions, MNCs and IT companies where the commercial property rates range from Rs 5500 to Rs 6500 per square feet while the commercial property rates in the most flourished sector 62 Noida range from Rs 6000 to Rs 6500 per square feet.

The posh residential areas of Ghaziabad like Indirapuram, Kaushambi, Vaishali and Vasundhra have adequate number of builder’s residential projects where the price ranges from Rs 4200 to Rs 6500 per square feet while the property can be leased at Rs 10 to Rs 15 per square feet.

Ghaziabad’s Crossing Republic Area connecting the district with Noida witness residential property rates varying from Rs 3000 to Rs 3500 per square feet while the rental is Rs 6 to Rs 10 per square feet. The reserved prices in Sahibabad area range from Rs 3500 to Rs 4200 per square feet.

The quickly flourishing Raj Nagar Extension and NH-24 area, the builder’s residential property ranges from Rs 2300 to Rs 3200 per square feet.  

The property rates may vary depending upon the location, amenities and facilities, use of land, surroundings, floor area ration and such other factors.