The Supreme Court's order is unlikely to have a major bearing on property prices in the national capital region (NCR), experts said.
The order will affect 8,000 dwelling units spread across 156 hectares of land. This accounts for a tiny proportion of the more than 4 lakh units expected to come up over the next five years in NCR.
“Most of these developers have multiple projects and it is quite likely that they would offer alternate deals to their
customers,” said Ajay Rakheja, director at Colliers International.
However, he said property prices in areas near Noida Extension such as Noida Expresway, Indirapuram and Greater Noida would witness an upward jump up to 15%.
An estimated 75,000 dwelling units or apartments are expected to be ready for possession across Ghaziabad, Noida, Faridabad, Greater Noida and Gurgaon, besides Delhi this year.
“There may not be an immediate impact on property prices, but once the existing supply gets absorbed over a period of time, say along the Noida-Greater Noida Expressway, prices in the area may go up,” said Anshuman Magazine, MD of real estate consultancy CB Richard Ellis.
The average prices of flats in Noida Extension are also sharply lower than those in the other NCR townships. This, experts said, is another reason why the Supreme Court order is unlikely to affect property prices in other areas.
An average house in Noida Extension was available in the price bracket of R11 lakh to R25 lakh that were bought over largely by the end-users.
Unlike investors and real estate speculators who park money into properties to
reap rich dividends later on, end-users generally buy properties that are close to their work places or on personal preference.
“Not many houses are available across other locations of NCR at these prices," said Shveta Jain, director (residential sales) of Cushman & Wakefield, a real estate consulting firm.
Santhosh Kumar, CEO (operations) of Jones Lang LaSalle India, feels it is quite likely that all those who had put money in these projects would be offered similar deals in other projects by the developers.
The Noida Extension Flat Buyers Association (NEOMA) is planning to meet builders soon and ask for clarifications on whether those wanting to exit will be paid back the amount invested with interest and the options before those who may want to shift.
The group has about 500 members.