Whereas governments in other suburbs of the NCR may be taking steps, either intentionally or unintentionally, to bolster real estate in their respective region, it seems that authorities in Noida may be making real estate in Noida more expensive for buyers and may eventually lead Noida to lose some of its appeal as an affordable locality to own real estate in the NCR. Recent decisions by authorities in Noida to hike the land allotment rate as well as stamp duty is expected to hurt market sentiments perhaps dangerously enough to shift investment intended towards property in Noida to other regions of the National Capital Region.
Such decisions, in a part of the capital region which is largely considered a magnate for first time homebuyers seeking an affordable first home, hurts the sentiment that property in Noida is more promising when catering to the masses of the NCR. Whereas property in New Delhi is well out reach of many in the capital and owning a home in the other promising suburb of the NCR in Haryana too has become costly, Noida presented itself as a great alternative to middle class households than regions with much more extravagantly priced homes.
Newcomers to the NCR would often be chided that settling down in Delhi is no joke, yet settling down and purchasing property in residential projects in Noida was largely considered less daunting and this suburb seemed to welcome migrants and first time homebuyers with grace and affability. The recent decisions by concerned authorities may harm the current hallowed status Noida and its surroundings regions enjoy as providing affordable homes in a region of the country where prices of real estate are rapidly becoming unaffordable to newcomers.
The impact of the decision is likely to affect the price of flats in Noida as well as add additional burdens on builders in Noida who may now have to concern themselves with higher land allotment rates in addition to already higher input costs and higher costs for machinery and equipment as well. Real estate developers in Noida are almost certain to pass on such additional costs to the consumer making real estate in Noida more expensive to end users seeking property in the suburb.
As opposed to many other parts of the capital region, Noida caters to end users and Greater Noida in particular is already well known as a preferred location for homebuyers seeking inexpensive lodgings. The decision to increase the stamp duty in Noida by two percent is likely to prove pernicious to residents of the city many of whom are paying a month EMI for upcoming projects in Noida the completion of which has possibly be postponed several times while at the same time these homebuyers are paying rent for their current home. By increasing the stamp duty by 2 percent such a homebuyer has to bear an addition burden in addition to many of the others he or she has to somehow accommodate for.
Such significant policy changes at a time when builders are already coping with additional challenges such as delays in the completion of a large number of residential projects in Noida shall likely harm real estate in the region. If the concerned government authority deems such changes necessarily for the fulfillment of a new mandate, perhaps such measures may be introduced at a more opportune time when there may not be so many unalterable additional pressures upon builders in Noida.