Property consultant JLL India has advised home buyers to avoid certain locations, including Noida Extension, in Delhi-NCR real estate market due to delays in projects delivery, oversupply, speculation and lack of infrastructure.
JLL India has declared Noida Extension, Greater Faridabad and Delhi’s L & J zones as ‘high-caution’ areas.
“The National Capital Region (NCR) has some locations that buyers are best advised to avoid. Various issues like delays in delivery, oversupply, speculation and infrastructure deficit have been plaguing these markets, rendering them unsuitable for first-time home purchase,” JLL India CEO – Operations & International Director Santhosh Kumar said.
On Noida Extension, which is part of Greater Noida, Kumar said the primary issue impacting this location’s viability as an investment destination is the oversupply of housing units.
“With 1.5-2 lakh units slated to hit this market, prices are unlikely to appreciate much. Many land acquisition issues involving local farmers have sullied the market here over the last few years. The ensuing delays and litigations, resulting higher compensation being paid to farmers for their land, has also decreased overall affordability,” he said.
The government’s decision to compensate developers for their losses by allotting them higher floor area ratio (FAR) would result in far greater development congestion than was originally envisaged for this area, Kumar said, adding that delays in completion of projects being another concern.
“Despite its disproportionate housing supply, Noida Extension has lost much of its earlier attractiveness,” he said.
JLL said that congestion will turn this area into an uninspiring concrete jungle even though metro and a wide road connecting Noida Extension to Noida are on anvil.