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With the perception that the new government in Uttar Pradesh will bring political stability, real estate players are again eyeing the bustling National Capital Region neighbourhood of Noida and Greater Noida.
Projects in the popular real estate and retail destination were in a limbo since the Allahabad High Court struck down land acquisition in Noida extension last year. Bookings had dropped by as much as 60 per cent and many projects were abandoned by promoters.
Optimistic outlook
“A slew of projects were abandoned and home buyers were apprehensive to invest in the area. Project enquiries and walk-in are slowly getting back on track. There is confidence that the new government in Uttar Pradesh will put real estate development back on track,” an official from Amrapali said.
Earlier this week, the Ponty Chadha-promoted Wave Infratrech, had announced a Rs 4,500-crore project comprising multi-use development and commercial project. To be built over 152 acre, the first phase will be operational by 2016.
“We had bid for the land for Rs 6,500 crore by outbidding players like Amrapali and The 3C company. Over the past 10 years, Noida is recognised as North India's most coveted retail destination,” Mr Manpreet Singh Chadha, Joint Managing Director, Wave Infratech said. The Wave City Centre will be developed in Sector 25 A and 32 in Noida.
On whether the project would be affected after the change in UP's political scenario as the company is perceived to be close to the former Chief Minister, Ms Mayawati, Mr Chadha said, “We have been doing business in UP for the last 60 years. We do not envisage any problem.”
The land has been registered and the company expects to get all the necessary approvals to start development within few weeks, he added.
SRS Ltd is also expanding its presence in Noida and Greater Noida. “We have planned an outlay of Rs 37 crore for various projects,” a spokesperson.said.
The Amrapali Group raised Rs 225 crore from ICICI Prudential AMC and IL&FS Investment for two separate projects in Noida. The funds will be used for construction of two projects and pay off some of its high-cost debt. Industry watchers note that the prices could move up North with players renewing focus on the area.
Mr Amit Gupta, Managing Director, Orris Infrastructure, said, “The focus on real estate will continue with the new Chief Minister. So far as issues related to land acquisition are concerned, we are sure that the new Chief Minister will take a close look at the issues at hand. The focus should now move from plain land acquisition to ensuring transparency in the process and land resale activity.”
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