Property developers and consultants said that most of the prospective home buyers are adopting a wait-and-watch policy for any purchase in Noida Extension, a part of Greater Noida area, and demand has fallen since the court order.
The Allahabad High Court has denotified more than 150 hectares of land acquired by the Greater Noida Authority and directed the entire land to be returns to their owners.
“The court decision has certainly impacted the real estate market in Noida Extension. Buyers are nervous and are on wait and watch till some clarity emerge,” global real estate consultant Jones Lang LaSalle (India) CEO (Operations) Santosh Kumar told PTI.
“Demand has definitely slowed down, but it is difficult to quantify the fall in demand. We have not witnessed decline in property prices so far,” Kumar said, adding that increase in home loan interest rates was also slowing down the demand.
Anil Sharma, the Chairman and Managing Director of property developer Amrapali, whose project has been affected due to denotification, said: “The housing demand in Noida Extension has declined by about 20 per cent.
“Before the Allahabad High Court Decision, we were selling 50 units a day. Now it is about 40 flats,” he added.
Sharma, however, hoped that some solution would emerge as the authority is in talks with land owners.
He added that the company was shifting 1,200 customers of an affected project ‘Smart City’ to ‘Dream Valley’ project and money would be returned to those wanting to withdraw.
A senior official of a leading real estate firm said that customers were shaky and reluctant to buy homes in Noida, Greater Noida and Noida Extension because of land issues.
Realty body CREDAI-NCR President Pankaj Bajaj, however, said: “The demand is low in May and June every year. So it is difficult to say that decline is because of the court order. If demand remains low in July also, then it is a concern.”
Meanwhile, Greater Noida Industrial Development Authority Chief Executive Officer Rama Raman has said that negotiations were on with farmers to acquire the land afresh.
He said that farmers would be given the benefits of new rehabilitation policy and several farmers have submitted applications to sell their land on fresh terms.
“We are also considering moving the Supreme Court if needed. We hope to resolve the issue soon,” he said.
Raman had said that the authority would ensure that developers who have already invested crores do not suffer.
“If needed, alternate sites would be provided to builders whose projects have not yet taken off,” he said.