Housing demand in Noida is likely to take a hit due to Noida authority’s decision to increase the land rates by 20% to 30% across several categories.
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.
“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% rise in the last two years, particularly because of the ongoing airport and the other developments in the area,” said Santhosh Kumar, Vice Chairman - ANAROCK Group.
“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% rise in plot prices – from INR 1,600 per sq. ft. in 2019 to nearly 2,200 per sq. ft. in H1 2022,” Kumar added.
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.
