Noida’s Real Estate Graph – What turn will it take?

January 25, 2007	(3 votes, average: 5 out of 5)  Loading ...
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Noida, NCR’s flourishing IT and residential hub shot into the limelight on December 29, 2006 with the serial killings case in Nithari, one of the township’s adjoining villages. Horrified and shaken, Indians are yet to recover from the macabre tales that made headlines for days.

The gory stories emerging from Nithari have brought to light the apathy, unaccountability and sheer brazenness of the police force. The role of the police in controlling crime, and maintaining vigil to provide a secure environment has always been in question, but firm and severe measures have to be taken now to prevent similar incidents in future. Local NGOs like the Manav Sewa Samiti have brought up issues of security and civic conditions in Noida with the authorities.

Will Nithari impact Noida’s real estate? Well, our guess is – in the short term ‘yes’, but in the long run, ‘no’.

There has been a marked drop in rates in the Noida real estate market in the last three weeks since the Nithari case broke out. In Sector 31, land prices were between Rs. 45, 000 per sq. ft to Rs.50, 000 per sq. ft, while Sector 30 commanded over Rs.50,000 as it is better appointed with large commercial spaces and retail malls.

Since the turn of the year, rates have declined by 10% across Noida, and particularly so in Sector 30 and 31. These sectors are just a road across from Nithari village, and the fear factor amongst residents is ruling the property rates.

Noida has had a history of criminal activity ever since it was carved out of Ghaziabad district, U.P in 1976, but the township has prospered as the commercial hub of Uttar Pradesh in spite of it. Its proximity to the capital and the Noida Authority’s planned moves towards a world-class city attracted the IT and ITES industry to set up their corporate offices here. Residential apartments and commercial spaces came up as a consequence, and the real estate market was poised to catch up with, and perhaps surpass its rival Gurgaon this year.

With these advantages still in place, and the administration’s plans for improving the existing infrastructure moving as per schedule, Noida is expected to bounce back, according to some real estate experts. Also, public memory is short, and property developers are banking on this and the “whatever will be, will be” ethic of the Indian psyche to bail them out of this temporary setback.

Story Submitted by Saumya

News Published Under:   Noida, Members Contribution |

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