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Housing demand in Noida Extension falls following a court order

1 Comment Sub Category:Court Orders,Realty News Posted On: May 23, 2011

Housing demand falls by 20 per cent following a court order directing return of land to the original owners.

The Allahabad High Court has denotified more than 150 hectares of land acquired for residential development by the Greater Noida Authority and directed the entire land to be returns to their owners. Following the court order,  Housing demand in Noida Extension area in the National Capital region (NCR) has fallen by at least 20 per cent.

“The court decision has certainly impacted the real estate market in Noida Extension. Buyers are nervous and are on wait and watch till some clarity emerge,” said global real estate consultant Jones Lang LaSalle (India) CEO (Operations) Santosh Kumar.

“Demand has definitely slowed down, but it is difficult to quantify the fall in demand. We have not witnessed decline in property prices so far,” Kumar said, adding that increase in home loan interest rates was also slowing down the demand.

A senior official of a leading real estate firm said that customers were shaky and reluctant to buy homes in Noida, Greater Noida and Noida Extension because of land issues.

Realty body CREDAI-NCR President Pankaj Bajaj, however, said: “The demand is low in May and June every year. So it is difficult to say that decline is because of the court order. If demand remains low in July also, then it is a concern.”

Meanwhile, Greater Noida Industrial Development Authority Chief Executive Officer Rama Raman has said that negotiations were on with farmers to acquire the land afresh. He said that farmers would be given the benefits of new rehabilitation policy and several farmers have submitted applications to sell their land on fresh terms. Raman had said that the authority would ensure that developers who have already invested crores do not suffer. “We are also considering moving the Supreme Court if needed. We hope to resolve the issue soon,” he said.

Times of India

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