Despite the sudden hike in the prices of Noida Extension flats following clearance from the NCR planning board, the proposed housing projects continue offering accommodation for the middle class at affordable rates.
According to realtors, the rate has not increased at its normal pace because the construction was stalled for about a year due to legal battles. A two-bedroom flat, which was available at a price of R18-20 lakh a year ago, is now being booked for Rs 20-22 lakh.
"There is a hike of only 15-20%. And it is justified because the cost of construction material has also gone up. Had there been no dispute over the master plan approval, the cost would have gone much higher because the construction of most of the flats must have been completed," said Badal Shrivastav, a Noida-based real estate consultant.
The Greater Noida authority officials and developers say that Noida Extension still offers decent accommodation at economical rates despite having world-class infrastructure and connectivity to the national capital.
"Noida Extension is the best township for middle class families because such infrastructure is not available in any other NCR town at such rates," said YB Sinha senior officer of Greater Noida authority.
"If you compare the flat prices in Chennai, Bangalore, Kolkata and Delhi-NCR towns, forget Mumbai, Noida Extension offers you a real dream home in a Delhi suburb with wide roads, adequate greenery, world-class schools, hospitals, expressways and international standard metro connectivity. Noida Extension projects support central and state government's aim of delivering affordable homes to its rising urban population," said Anil Sharma, chief managing director (CMD) of Amarpali and vice-president of confederation of real estate developers association of India.
Officials say that the concept of affordable housing has to be alive to meet the needs of growing urban population.
As per government survey, at least 25,000 people add to the population of Delhi-NCR each year. And, after getting employed here, they dream of owning a house.
"Though Ghaziabad's Raj Nagar also offers flats in the same range, Noida Extension's infrastructure is far ahead. After a year, Noida Extension will be out of bound for middle class, given the present positive market sentiment," said RK Arora, CMD, Supertech developers.