With clarity on the eco-sensitive zone around the Okhla Bird Sanctuary, uncertainty on investment has ended and home prices in Noida will increase 8-15 per cent in the next two-three quarters, according to real estate companies.
“The demand is set to go up and prices that are currently rather low will see a 10-15 per cent correction in the next six months,” said RK Arora, Chairman, Supertech Ltd.
Many buyers who had been sitting on the fence are now expected to take the plunge.
The National Green Tribunal in October 2013 had ordered a halt in construction around a radius of 10 km from the Okhla Bird Sanctuary.
This stalled several projects by developers such as DLF, ATS, Jaypee, Lotus Greens and Supertech.
On Wednesday, the Environment Ministry issued the final notification on the Okhla Eco-Sensitive Zone (ESZ), bringing relief to over 55,000 home buyers.
According to the Ministry’s notification last year, the ESZ will cover an area up to 100 metre from the eastern, western and southern boundary and up to 1.27 km from the northern boundary of the bird sanctuary.
Brijesh Bhanote, Director, Sales and Marketing, Lotus Greens Developers, said: “(With the final notification is issued), home buyers outside the ESZ will get occupancy certificates of their flats.
“Also, the Noida administration will earn revenues through registration fees and stamp duty, which is expected to be ploughed back into developing the region.” Prices are expected to rise 8-15 per cent in a quarter, he added.
Sachin Gaur, Director and CFO, Jaypee Infratech, said the notification will boost investment confidence among realty buyers.
Amit Modi, Vice-President of CREDAI Western UP, said: “Ambiguity on the ESZ has already cost the local economy more than Rs 2,000 crore.
“The (notification) move will also see a sudden rise in property registration activity in the area, which has been down nearly 30 per cent on a year-on-year basis.”
The shares of Jaypee Infratech ended 5.30 per cent higher at Rs.15.49, while Omaxe closed 0.11 per cent higher at Rs.135.10.