Delhi has been widely considered to be one of the most happening places in terms of real estate investment. With the laying down of Delhi Metro the demand for properties in the NCR region has gone up even further. However, investment in properties is also considered to be a difficult proposition primarily because of the skyrocketing prices.
A recently conducted survey by ConstructionBiz360 revealed that a resounding 100% of the respondents feel that the price rise in Noida belt will impact the real estate market in New Delhi.
The Noida extension of New Delhi has been one of the hotbeds of land acquisition controversy for over a year now. The realty market in this area has struggled to find a firm foothold ever since the Supreme Court literally snatched the lands that had been acquired for the ambitious residential projects from almost three dozen builders. These lands had been initially acquired from two villages which were then quashed. Now with investors having to pay additional amounts for compensating farmers, the reactions are being channelised to the buyers who now are being forced to pay more for acquiring property.
According to Rajesh Goyal, managing director of RG Group, a real estate developer in the Delhi region, “Delhi as a real estate destination has exhausted itself. The developers in the city are therefore looking to explore newer and open spaces to invest.”
Noida being one such place, the demand is visibly high and so are the prices of properties there.
The overall outlook for the real estate sector in the country is reflective of the situation. Anuj Puri, chairman and country head, Jones Lang LaSalle India says, “The outlook for India's commercial real estate market remains favourably balanced, though we are definitely looking at a more rationalised growth over the mid-term.”
The situation in Noida is expected to improve and some signs of improvement have been clearly visible from recent investments.