Noida, Greater Noida freeze land rates amid slowdown in realty sector

The Yamuna Expressway authority too is expected to announce a similar decision

The Greater Noida authority, in its board meeting on Monday, decided against increasing land allotment rates due to the slowdown in the realty sector and fall in property sales.

The Greater Noida authority felt increasing the land allotment rate will further create a negative sentiment in the market. (Sunil Ghosh/HT Photo)

Allotment rates are fixed prices at which the authorities sell land for housing, industrial units, commercial and institutional projects.

“As the realty sector is witnessing a slump, we have decided not to increase land allotment rates for the financial year 2017-18 in all categories. We have approved a proposal in this regard in our board meeting,” said Debasish Panda, chief executive officer (CEO), Greater Noida authority.

There are around 80 under-construction housing projects in Greater Noida in which thousands of homebuyers are suffering due to late delivery of the projects.

“Builders have failed to finish their projects because they are unable to sell their inventory. There is already an oversupply of flats in the market. There are no takers for residential plots amid the slowdown in the realty sector. Therefore, increasing the land allotment rate will further create a negative sentiment,” said a Greater Noida authority official.

In its board meeting held on June 2, the Noida authority too did not increase the allotment rates. The Yamuna Expressway industrial development authority (YEIDA), which is to hold its board meeting on June 9, will also not hike the land allotment rates.

Parties interested in buying land for setting up industries had requested officials to decrease the allotment rates in the wake of the slowdown in the realty market and due to demonetisation, officials said.

“We will not decrease the land allotment rates in any category. Keeping in view the slowdown, we will freeze the rates in all categories and not increase them further,” said Amarnath Upadhyaya, additional chief executive officer (CEO), YEIDA.