Right time to buy for end users, investors, and second-home buyers:
The overall market outlook remains optimistic as the government continues to focus on rejuvenating infrastructure and support large-scale, affordable housing development: Dinesh Jain, MD of Exotica Housing which having a luxurious project on Noida Expressway namely Exotica Fresco and many others in NCR including Greater Noida west.
Talking about the real estate market, Dinesh Jain, MD of Exotica Housing Pvt Ltd, said in an interview with Times Property that the sector needs major initiatives like faster approvals, single-window system, simplification of tax structure, and reduction in home loans rates by 1-1.5% to boost sentiment.
Excerpts from the interview:
WHAT IS THE SENTIMENT IN THE REALTY MARKET?
Sentiment in the market is up owing to the Centre’s notification reducing the `no-go’ zone around Okhla Bird Sanctuary. Also, the cost of properties is more realistic.
Marginal reduction in interest rates has brought some relief, but it is not at all adequate in attracting fence-sitters to buy or invest, while developers like us have been going slow on new project launches across segments. But for end users, investors, and second-home buyers it is the right time to invest.
WHAT IS YOUR EXPECTATION FROM THE GOVERNMENT TO REVIVE THE OVERALL GROWTH OF REAL ESTATE MARKET?
The overall market outlook remains optimistic as the government continues to focus on rejuvenating infrastructure to support large-scale, affordable housing development.These are crucial steps that can revive sentiment in the housing sector.
The `Housing for all’ initiative, along with revival of major urban infrastructure projects and removal of impediments to land acquisition, can in unison reap rich dividends for the sector in the long term.
Among the important measures to be taken up on priority are, one, reduce interest rate on home loans by 1-1.5%; expedite approval process through single-window system, which will reduce the cost of projects by cutting down on the time incurred in obtaining the approvals. This would also increase the supply in the market, making prices competitive and giving buyers more options. Three, simplification of tax structure and, four, a comprehensive land acquisition bill would reduce the cost for homebuyers and revive the market.
Over 250 ancillary industries derive their existence because of the realty sector, but we do not yet have an industry status, which makes funding projects difficult and expensive. Funding can be greatly improved by extending REITs (Real Estate Investment Trust) to the residential sector as well. Currently it is restricted to commercial projects only.
YOUR COMMENT ON THE MUCHDELAYED NOTIFICATION BY THE UNION ENVIRONMENT AND FORESTS MINISTRY.
Frankly speaking, this will have a very positive impact in terms of appreciation and developing confidence in homebuyers. This decision comes as great news for nearly 55,000 homebuyers, who were stranded because of this issue.
Now these people can look forward to moving into their new homes which were ready for possession a long time ago. When we look at the bigger picture, it is not just the buyer who is relieved but also others like investors and financial institutions, who invested thousands of crores here.
Of course, the delay in approval was a monetary disaster for every party involved: homebuyers were paying hefty EMIs with no clear picture about the possession of their units; developers were paying heavy interest on their loans from banks for their projects, while the Noida authority was incurring loss in revenue due to non-registration of all these housing units.
WHAT ARE THE PROSPECTS OF NOIDA AND ITS ADJOINING AREAS LIKE NOIDA EXPRESSWAY AND CENTRAL NOIDA?
Undoubtedly, the future is bright. In terms of price appreciation, the area has always highly in demand and, now, with the Centre’s notification, Noida market can resume its fast pace of sales.
The location will also see more housing sales along with office occupiers and retail space leasing from now on. Also, with interest rates going down and the government focusing on infrastructure development, this might spell good news for the realty market in Noida Nearly 45,000 housing units are located on Noida Expressway and central Noida, awaiting possession.Also, projects in major sectors like 74, 75, 76, 77, and 78 along with Sectors 118, 119, 120-122 in central Noida are on the verge of completion.
On Noida Expressway, there is a big chunk of ready-to-move-in flats in sectors like 93, 94, 98, 110, 131, 133, 124, 128, 129, and 135. Almost all the known builders have projects in this region, with the projects launched between 2009 and 2012 at an average rate of Rs 2,500-2,700 per sq ft onwards.
At present all these properties are priced between Rs 5,000 and Rs 6,000 per square feet, with state-ofthe-art-infrastructure, ample greenery, and excellent connectivity.
DO THE TWIN CITIES OF NOIDAGREATER NOIDA QUALIFY FOR THE SMART CITY TAG?
`Smart Cities’ mission focuses on the use of modern technologies for delivering urban services to citizens, while conserving resources and building self-sustainability.
Builders, development authorities, and other stakeholders must come together to bring new technologies in mobility, e-governance, water and waste management, energy conservation techniques, etc.
With planned infrastructural development and faster connectivity, the twin cities of Noida-Greater Noida are well posed to walk into the `Smart Cities’ club.
After reading above article’s discussion, Jaypee Greens having many big projects in Jaypee Wish Town which is developed and waiting for possession. So the home buyers who purchased their dream homes in the area which was affected due to NGT issue now got relief and they would get homes soon.
Even many projects are running in central Noida such as Amrapali Silicon City, Supertech Projects Noida etc having the strong sentiments of the buyers.
Source: Times of India dated: 22 August 2015