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Twin towers demolition unlikely to impact housing demand, prices in Noida, Greater Noida

Rishabh Chamoli | 2022-08-30

The demolition of the twin towers is unlikely to have an adverse impact on housing demand and prices in Noida and Greater Noida as the market has already factored in the Supreme Courts decision passed nearly a year ago, according to industry experts.
The experts also opined that the demolition of the illegal structures that happened on Sunday after more than a nine-year long legal battle is also expected to boost consumer sentiments, especially in terms of enforcing the rights of homebuyers

In recent years, properties developed by builders with credible track record are in demand after a raft of instances of homebuyers facing problems of long delays in getting possession even after making payments.

The decision to demolish the twin towers of Supertech, located in the fast growing Noida and Greater Noida property market in Uttar Pradesh, is one such example.

The demolition of the twin towers will not impact prices and demand in Noida and Greater Noida.
Even though the buildings were demolished recently, the news is old, and the sector has moved on, CREDAI NCR President Manoj Gaur told PTI.

The twin towers Apex 32 storeys and Ceyane 29 storeys were demolished in 12 seconds on Sunday, in a carefully choreographed and meticulously executed demolition, the biggest such exercise in the country so far.

Over 3,700 kilogram of explosives were used to reduce the 100 metre tall structures to a huge pile of rubble.

Gaur, the CMD of Gaurs Group, noted that the demand drivers and factors affecting the pricing are entirely different at present.

The market at present is end user driven and regulated efficiently by measures like RERA. Therefore, the sector has already addressed the issues that led to the demolition of the twin towers.
Today, the market is robust and sufficient mechanisms are in place to ensure the buyers confidence, he added.

Housing brokerage firm Anarock Vice Chairman Santhosh Kumar said the demolition of the twin towers conveys that the authorities and the judiciary have zero tolerance for any malpractice.

This reinforces the consumers confidence in the system and empowers them substantially. The buyers today are more discerning and prefer to go with developers and projects with a clean track record, he told PTI.

In 2022, Noida and Greater Noida together accounted for nearly 30 per cent of Delhi NCRs sales, indicating the importance of these markets to the region.

As per Anarock, the current average residential real estate prices for Noida and Greater Noida are Rs 5,120 per square feet and Rs 3,750 per square feet, respectively, while the price appreciation during the past five years has been 8 per cent and 15 per cent, respectively.

While the demolition attracted a lot of attention, the prices are not likely to be affected due to this action. On the contrary, the buyers may now feel safer and more secure towards real estate purchases, Kumar said.

As per the Anarock data, homebuyers who booked flats in housing projects in Noida Greater Noida are worst affected, with over 1.65 lakh flats worth Rs 1.18 lakh crore stalled or significantly delayed in these two cities at May end.