The Noida Authority has decided to increase the land rates by 20 percent to 30 percent across several categories. However, the rates for the A-plus category have remained unchanged at Rs 1,75,000 per sq m.
The authority has increased the prices of A to D category (priced between Rs 39440 to Rs 92,950 sq m) by 20 percent and E category to Rs 41,250 per sq m from earlier Rs 36,200, said the authority in a statement.
The authority also increased the group housing rates by 20 percent while keeping the residential building prices unchanged. Earlier, plots for group housing projects were priced between Rs 51,000 per sq m and Rs 1.3 lakh per sq m.
How will this impact homebuyers?
Although the hike was expected (the last hike happened in October 2019), but it may eventually arrest housing demand as the overall cost of acquisition would go up for the prospective homebuyers. This along with the recent interest rates and property prices hike amid rising input costs will be a burden on the prospective homebuyers, said Santhosh Kumar, Vice Chairman at ANAROCK Group.
"If we look back, ever since the construction of the Jewar International Airport has begun, 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 percent rise in the last two years, particularly because of the ongoing airport and the other developments in the area. More so, post the pandemic there has been an incessant rise in demand for plots which ultimately has led to a price rise. Several plotted development projects have been launched at Yamuna Expressway in the last two to three years and if we look at the plot prices, as per ANAROCK Research, Yamuna Expressway has seen anywhere over 38 percent rise in plot prices – from Rs 1,600 per sq. ft. in 2019 to nearly Rs 2,200 per sq. ft. in H1 2022. ," he said.
This is the highest land price rise that a micro market has seen among all the top 7 cities. The land price rise is not just because of the growing demand but also because of limited availability in key areas. Noida in particular has no land available, Kumar added.
"Moreover, this price rise by the Noida authority will further increase land prices. With land prices going up, we may further see its impact on the new launches. As is, of total new launches in UP in the last few months, developers have curtailed new launches in the NCR region because of the high land prices. They are looking to wait and watch," he said.
