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| Hope on property price dip in Noida after FAR rise |
| Atanu Kumar Das / New Delhi Sep 04, 2010, 01:35 IST |
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The higher floor area ratio (FAR) announced for the suburb of Noida will help real estate developers there build more apartments on a plot. It may also lower prices in a market which is described as having “excess supply”.
There are more than a dozen builders like Jaypee Greens, Supertech, Earth Infrastructure, Gaursons, Prateek Buildtech, Nirala Developers, Anthem Infrastructure, Logix Group, 3C Company, Amrapali and Assotech who have recently announced projects in this market.
“There are so many builders now who have come up with projects in and around Noida. Every builder wants to cash in on the demand in the housing space. Prices have more or less stabilised, but one can expect it to go down, as every week we witness one or another project getting launched,” said Manu Goswami, head, business development and strategy, Jaypee Greens.
The New Okhla Industrial Development Authority (Noida) recently announced an increase of FAR from 2.5 to 3. For ‘green’ buildings, it has been raised from 2.75 to 3.75. “It will be good for the developers, as it allows us to grow vertically. Moreover, it will encourage new developers in the city,” said Pradeep Jain, chairman, Parsvnath Developers.
“I know there will be a 10 per cent increase in FAR but we will get to know the exact details in the next two to three days,” said Mohit Arora, director, Supertech.
“It is the move in the right direction, considering the 2031 Master Plan. An increase of FAR from 2.75 to 3.75 is a big move and it will encourage more developers to turn green,” said Shakti Nath, chairman and amnaging director of the Logix Group.
“Increase of FAR will be appreciated by the developers. We already know that Noida is an oversupply market. With this move, prices are expected to come down,” said Santosh Kumar, CEO, operations, Jones Lang LeSalle Meghraj. Adding: “There are a lot of investors who are buying the properties in Noida, not the end-users.” If they default, prices would dip, he said.
Most developers, on the other hand, feel housing prices are quite stable in Noida and increasing the FAR doesn’t mean these will come down.
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