Land rate hike by Noida authority to hit housing demand
Real Estate

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 sales
Only 93 projects in Gurugram receives completion certificate since 1992


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

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code