Noida Authority has endorsed its freshly redefined redevelopment policy with the same impetus as the ongoing redevelopment in Mumbai, which will enable the release of land in central locations of the fast-growing metropolis in Uttar Pradesh, providing a big boost to the already booming real estate market.
Under this policy, the old flats allotted to the economically weaker section (EWS) of occupancy will be dismantled with new flats constructed in their place. In addition to that, the developer will be able to earn revenue by selling new housing units as well as building larger flats for the original allottees.
“We have identified 4-5 buildings, which are in a dilapidated state. When these buildings were constructed, FAR of 1.5 was allowed and now FAR of 3.5 is permissible. We will invite RFP (request for proposal) for every structure separately,” said a Noida Authority official.
According to the policy, the chosen developer will be permitted to sell an extra area, provided it also builds larger apartments for the original allottees and manages their accommodation until the old building is demolished and they move into the new flats.
“While the policy is a much-needed step towards opening a prime land bank in the city centre, every project will come up with its own challenges. The project has to be commercially viable because buyer’s preference had changed in recent times,” Nikhil Hawelia, MD, Hawelia group and Secretary of Industry Body CREDAI (western UP) stated.
“The Noida Authority’s decision can fulfil the dream of owning a home in the city’s thriving sectors like 27, 93, and 93A,” said Yash Miglani, MD, Migsun Group. “Allotment of higher FAR and engaging co-developers in stable projects will address the long-pending demand of stuck homebuyers and unlock immense potential for modern, vertical living spaces.”
The Noida Authority has taken a significant step by approving the involvement of co-developers in five stalled projects, which will positively impact over 5,000 customers who are waiting to receive possession of their new homes.
The Confederation of Real Estate Developers Association of India (CREDAI) notes that there are a total of 190,000 units stuck in Noida, Greater Noida and Ghaziabad that are worth Rs. 1 lakh crore. In Greater Noida alone, at least 36 realty projects are under the Insolvency proceedings to various creditors.
It is estimated rupees 40,000 crores are owed to Noida, Greater Noida (GPA) and Yamuna Expressway authorities on plots that have been provisionally allotted on which the real estate projects are at different stages of execution, principal, interest and penal charges.
“The (Noida Authority’s) step marks a progressive step toward urban revitalisation as it unlocks a significant real estate potential, especially in the heart of the city. The redevelopment of old, dilapidated buildings with higher FAR while improving the existing structure and providing better facilities will also generate more homeownership,” said Salil Kumar, director, marketing and business management, CRC Group.
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