Real Estate in Noida has had its ups and downs over the years and somehow never settled as a stable market. Controversies regarding Residential projects in Noida keep cropping up every few months; which leads to insecurities in the market. Noida as a real estate destination has been in existence in NCR much before Gurgaon, however it has never been able to command a leader’s position. There is no doubt that infrastructure wise Noida is much better than any other city of NCR, but is unable to command the value it is worth.
Real estate in Noida has been plagued with corruption charges, non-adherence to norms, delays, cheating with investors etc. All these issues increase the trust deficit between the developers and end users and create a negative impact on the real estate market in Noida. Initially, Greater Noida and Greater Noida Extension have had their share of land litigations which delayed the real estate expansion in Noida. The arrest of Chief Engineer of Noida/Greater Noida/Yamuna Expressway by CBI, for corruption and allotment of projects to selected vendors, further demonstrated the extent of corruption in real estate in Noida.
All the big builders like Jaypee and Supertech have been in controversies for one reason or the other in Noida. The courts have ordered Supertech to demolish the Apex towers for illegal construction; Jaypee has been fighting against huge time delays in their prestigious Wish Town Project; The latest being scrapping of the Upcountry township being constructed by Supertech on Yamuna Expressway, due to forgery. Such issues have immensely dented the reputation of real estate sector in Noida. Another, major issue with real estate in Noida and UP in general, is the political interference and personal interests involved of vested parties; who control the real estate or land mafia in the background. These manipulations finally have a very huge impact on the market sentiment.
Luxury apartments in Noida has retained its market share as an end user market and therefore has been able to survive all the upheavals. The property prices in Noida have maintained the ‘middle class’ range and therefore are still attracting potential investors. However, the growing trust deficit due to cheating and non-adherence to norms is impacting the real estate sector in Noida and heralding a negative sentiment in the market, which will further lead to alienating the individual investor.
This aspect needs to be arrested at the earliest and can be best handled by the real estate developers themselves. In case, this negative sentiment is not nipped at the earliest, Noida might witness the worst slump in the real estate sector. There is huge inventory lined up and under construction in Noida and its suburbs, add to it the prevailing slow-down in the real estate sector in India; real estate sector in Noida cannot afford to take the end user for granted and continue with its unethical practices for long, unless it is planning for its end game.