Greater Noida Authority Raises ₹1,500 Crore Through Allotment of Group Housing Plots

The Greater Noida Authority recently raised ₹1,500 crore from selling five group housing plots. This figure is particularly significant as it is double the reserve price initially set for these plots, highlighting the burgeoning demand for quality housing in Greater Noida. 

The E-Bidding Process

The Greater Noida Authority conducted an e-bidding process to allot five group housing plots in different sectors across the city. A total of 38 developers participated in this process, underlining the competitive nature of the real estate market in Greater Noida. The reserve price for these plots ranged from ₹48,438 per square meter to ₹59,943 per square meter. However, the developers placed bids that were 128% higher than the reserve prices, ultimately resulting in the authority collecting ₹1,500 crore.

The remarkable response from developers is indicative of the high demand for land in Greater Noida, driven by the city's rapidly developing infrastructure and growing population. Ravi Kumar NG, the CEO of the Greater Noida Authority, commented on the success of the bidding process, stating that the high bids reflect the increasing demand for quality housing projects in the region.

The Key Players

Among the prominent developers who secured plots during the e-bidding process were Godrej Properties and Dubai-based Sobha Limited. These companies, known for their upscale residential projects, are expected to contribute significantly to Greater Noida's urban landscape.

- Godrej Properties acquired two plots: a 32,000 square meter plot in Sector 12 for ₹1,36,743 per square meter, and a 38,700 square meter plot in Sector Sigma-3 for ₹1,03,243 per square meter. Godrej's involvement is likely to introduce high-quality residential projects that cater to the growing demand for premium housing in the city.

- Sobha Limited made its first foray into the Greater Noida market by acquiring a 13,900 square meter plot in Sector 36 for ₹1,16,012 per square meter. Sobha is known for its ultra-luxury housing projects, and its entry into Greater Noida is expected to raise the bar for residential developments in the region.

Other notable players in the auction included Ashtech Industries, which secured a 22,558 square meter plot in Sector 12 for ₹1,30,743 per square meter, and Prasu Infrabuild and Kamroop Infrabuild, which jointly acquired a 28,265 square meter plot in Sector Eta 2 at a rate of ₹71,404 per square meter.

The Impact on Greater Noida's Real Estate Market

The successful auction of these five plots highlights a key moment for Greater Noida's real estate market. Known for its affordable housing and proximity to Delhi, the region is now attracting high-end developers like Godrej and Sobha, promising a diverse range of housing options, including luxury and ultra-luxury segments.

Dinesh Gupta, Secretary of the Confederation of Real Estate Developers Association of India (CREDAI), welcomed the entry of new players into the market, stating that their presence would create diversity in the real estate offerings in Greater Noida. He also pointed out that while e-bidding is an effective way to ensure transparency and competitiveness. The Greater Noida Authority's ability to secure double the reserve price for these plots is a testament to the city's growing appeal among developers and investors. 

Challenges and Future Prospects

Despite the positive outlook, there are challenges that need to be addressed. The high cost of land, driven by competitive bidding, could potentially lead to higher property prices, making it difficult for middle-class buyers to afford homes in the region. Additionally, the concentration of major developers in the market could create barriers for smaller players, reducing the overall diversity of housing options.

However, the Greater Noida Authority remains optimistic about the future. With plans to introduce more plot schemes and the continuous development of infrastructure, the region is expected to attract even more investment in the coming years.

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