The price of property in Noida and many other cities across the country is expected to remain stagnant for a few more quarters according to experts. It has been stated that the correction in the price of property in Noida and other major real estate markets in the country which began three years ago is yet to reach its end. According to those in the know, the price of real estate property in Noida and other large micro markets in the country had appreciated faster than the incomes of prospective homebuyers. Hence much of the property across the nation became too expensive for new homebuyers to invest in and flats in Noida as well became priced higher than most households could afford. Although the market correction began 3 years ago, there may yet be time before the price of apartments in residential projects in Noida begins to rise. There is as yet far too much supply seeking few buyers to have an impact that is likely to lead to a hike in the price of property in Noida.
During the real estate boom across the major real estate markets in the country, many speculators and builders in Noida hoarded properties expecting the price of units would continue to appreciate. When the slowdown took hold in the property market in 2013, those who were left holding unsold units had no way to sell them at a profit due to the fact that many units become priced beyond the income level of large numbers of homebuyers. Hence prices of flats in Noida and flats in other cities began to drop precipitously and today much of the residential property in Noida and other micro markets is stagnant at prices well below where prices were thirty-six months ago. Efforts taken by the Reserve Bank of India in the early part of this year to bolster demand for residential property in Noida and other real estate markets may help yet most real estate experts believe that it may eventually take nearly three years to offload the existing inventory at the rate new homes are currently being sold.
Fortunately, there has not been a systemic failure in the real estate market in India and luxury flats in Noida and other cities still, have eager buyers. Unlike property in China and Dubai, there is no indication of impending doom for real estate companies in Noida or for that matter for such companies across India. There has been a correction in prices yet due to the diversity and huge size of the real estate market in India few builders in Noida and real estate developers across the country are left holding inventory which they cannot eventually hope to sell. Whereas China today is believed to have a colossal housing bubble and the housing bubble in Dubai burst during the global financial crisis, real estate in India during the boom years had displayed greater restraint and fewer excesses than either China or Dubai had. There are no ghost cities in India as there are to be found today in China where one can find today numerous cities with thousands of flats the overwhelming majority of which are unoccupied. In addition, unlike Dubai, there was no excess of flamboyant construction in India leading to the housing bust in the city which changed the fortunes of many of its citizens.
Even as affordable housing in Noida and other parts of the country may have temporarily become out of the reach of many homebuyers, within a matter of a few more months as the economy continues to improve and the price of flats in Noida dips a little more it may reach a point of equanimity where both buyers and sellers feel at ease buying and selling.