The real estate bubble in Greater Noida may go bust after the Supreme Court upheld a lower court order quashing the acquisition of 156 hectares farmland in Greater Noida for housing projects, even as builders assured the money was safe.
“Villagers of Shahberi moved court saying their land was acquired without their objections being paid heed to. Farmers of other villages with similar grievances have also moved court. If more such verdicts come, there will certainly be trust deficit with the buyers and the business will be hit,” said a key real estate player in the National Capital Region.
Experts say back-to-back quashing of land acquisition, besides political pressure, will deter the authority.
“In industrial townships, such as Noida and Greater Noida, farmers cannot sell land directly to builders. This will lead to erratic growth and illegal colonies — not a good sign for the real estate business,” a market watcher said.
The demand for houses in Noida Extension has also begun to come down. Client walk-ins have plummeted, say realtors. The hustle and bustle of the project area is long gone. Agents are crest-fallen. Investors are panicky. Statistics pieced together from various builders suggest the demand has come down by 20 to 30%.
The National Real Estate Development Council (NAREDCO) feels the developments will adversely impact developers resulting in substantial losses besides affecting general sentiment of the housing market.
RR Singh, director general, NAREDCO, said, “The Greater Noida Authority should compensate builders either by providing alternative land or by refunding the land cost charged from them.”
RK Arora of Supertech Builders and Anil Sharma from the Amrapali Group said, "Shahberi is only a small part of the total Noida Extension area. The petitions filed by other villages are different in nature and merit. There's nothing to panic.”