Noida Authority Increases Land Allotment Prices by 6%: Key Decisions and Implications

The Noida Authority has announced a six per cent increase in land allotment prices for the financial year 2024-25. This decision was made during its 214th board meeting held on Friday, July 12, 2024. The price hike will affect group housing, institutional, and industrial sectors, marking a crucial shift in the region’s real estate dynamics.

Meeting Overview and Key Attendees

The pivotal board meeting was chaired by Uttar Pradesh Chief Secretary and Authority Chairperson Manoj Kumar Singh. It was attended by Noida Authority CEO Lokesh M, Additional CEO Ravindra Kumar, and other board members. The discussion centered on revising the allotment prices and addressing several pressing issues impacting the real estate sector in Noida.

Details of the Price Hike

An official statement from the Authority highlighted that the allotment prices for various types of land, including residential plots, have been increased by six per cent. However, the rates for the A+ category residential plots remain unchanged. This price adjustment also extends to industrial areas and commercial uses, specifically affecting rates for the IT/ITES sectors. The decision aims to align the prices with the current market trends and economic conditions, ensuring the Authority’s financial health and sustainable development.

Addressing Stalled Projects

A significant portion of the meeting focused on the resolution of legacy stalled projects and implementing recommendations from the Amitabh Kant committee. This committee was established to protect home-buyers’ interests and ensure the timely completion of delayed projects. Following the committee’s recommendations, the Uttar Pradesh government issued a policy order on December 21, 2023. 

The policy’s primary goal is to revive stalled projects and make homes available to buyers promptly. To date, 27 out of 57 projects have successfully utilized the scheme’s benefits, covering approximately 47 per cent of the total developments. By June 18, 2024, the registration for these 27 projects was completed. The Authority expects to receive Rs 830 crore within a year for the remaining 75 per cent of the funds, facilitating the registry of approximately 3,000 flats in these projects.

Extending Construction Periods

Another critical decision was the approval of a proposal to extend the construction period for housing projects. Developers facing delays due to unforeseen circumstances can now opt for a 10 per cent annual surcharge extension beyond the initial 12-year period, up to a maximum of three years. This extension will be subject to specific conditions and will not apply to projects where the time extension fee has already been paid. This move aims to provide developers with the flexibility needed to complete projects without compromising on quality or facing undue financial stress.

Additional Initiatives and Approvals

The board also approved several initiatives to enhance Noida’s infrastructure and support sustainable development:

1. Allocation of Residential Plots for Displaced Farmers: Five per cent of residential plots will be allocated to displaced farmers of Noida, ensuring their rehabilitation and participation in the region’s growth.

2. Development of Green Spaces and Biodiversity Parks: Specific sectors will see the development of green spaces and biodiversity parks, contributing to environmental sustainability and enhancing the quality of life for residents.

3. International Golf Course Construction in Sector-151: Approval was granted for new civil work related to the construction of an international golf course, aimed at boosting Noida’s profile as a premium real estate destination.

4. Development of Deer Park and Biodiversity Park in Sector-91: These projects will adhere to all environmental guidelines, promoting ecological balance and offering recreational spaces for residents.

Formation of a Committee for Sustainable Development

The board approved forming a committee to study and report on the new Sustainable Development and Building Regulations (SDBR-2023) prepared by the Bureau of Indian Standards (BIS). This initiative underscores the Authority’s commitment to sustainable development and adherence to contemporary building standards, ensuring that Noida remains at the forefront of green urban planning.

Conclusion

The Noida Authority’s latest decisions reflect a strategic approach to enhancing the region’s real estate sector. The increase in land allotment prices, coupled with the extension of construction periods and the introduction of sustainable development initiatives, is poised to impact developers and home-buyers significantly. These measures aim to foster a balanced growth environment, ensuring timely completion of projects and promoting sustainable urban development. As Noida continues to evolve, these strategic decisions will play a crucial role in shaping its future real estate landscape.