Increase in realty rates as much as 40% along route
With the Yamuna Expressway thrown open to public, investors and real estate players are set to reap benefits. The Expressway connects Noida, Greater Noida with Agra, one of the hottest tourist destinations.
Anticipating the benefit to commercial and residential establishments in the region, the Noida Authority had recently upped the circle rates. This had led to an increase in property prices by 25-40 per cent.
Jaypee Infratech, promoter of Yamuna Expressway, has the right to develop real estate along the Expressway over 6,175 acres (equivalent to 530 million sq ft). Of the total 530 million sq ft developable area, 311 million sq ft is in the National Capital Territory alone. Jaypee has cashed in on the project by selling 27,512 units at an estimated value of Rs 14,783 crore.
Analyst say that realty players have always used Noida’s bustling infrastructure, such as DND toll road and Metro rail connectivity, as a strategic sales tool.
The Ponty Chadha-owned Wave Infratech has also speeded up investment in the area with its mixed used development project, Wave City Centre, getting regulatory approvals. Other developers include Supertech and Paramount Group.
A recent Cushman and Wakefield report in the quarter ended June saw the highest number of new units launched in the NCR in Noida.
However, there is a contrarian view, too. Indicating the difference between the market rates and Government decided rates, Gaurav Pandey, Senior Vice-President and Head Research, PropEquity, said, “The circle rate revised upwards will have a marginal impact on new launch prices in Yamuna Expressway. Increase of circle prices will bring it closer to the market value of properties”.