Land rate hike by Noida authority to hit housing demand

Housing demand in Noida is likely to take a hit due to the Noida authority’s decision to increase land rates by 20% to 30% across several categories. The hike was not unexpected (the last hike happened in October 2019), but it may eventually arrest housing demand as the overall cost of acquisition would go up for prospective homebuyers. The land rate hike comes alongside the recent rise in interest rates and property prices amid rising input costs. “Ever since the construction of the Jewar International Airport began, there has been a spurt in real estate activity in and around the airport, inevitably leading to rise in land prices. Land prices have seen more than 30-40% rise in the last two years, particularly because of the ongoing airport and the other developments in the area,” said Santhosh Kumar, Vice Chairman - ANAROCK Group. He added that as per ANAROCK research, the Yamuna Expressway has seen an over 38% rise in plot prices, from Rs 1,600 per sq ft in 2019 to nearly 2,200 per sq ft in H1 2022. This is the highest land price rise that a micro market has seen among the top seven cities. The move by the Noida authority would significantly raise the land prices in a city where affordability has been the main driver of demand amid coronavirus pandemic which was earlier reeling under instances of developer insolvency cases and project delays,” said Vikas Wadhawan, group CFO, Housing.com. Of the total new launches in Uttar Pradesh in the last few months, developers have curtailed new launches in the National Capital Region because of the high land prices. They are looking to wait and watch. See also: Shriram Properties reports 26% increase in salesOnly 93 projects in Gurugram receives completion certificate since 1992