F-1 not likely to affect Noida realty market
The drop of Formula 1 is not likely to affect the Noida-Greater Noida real estate market for long term as the region holds huge growth potential.
Following the successful launch of Grand Prix series in India in 2011, Noida and Greater Noida had been excited about hosting the next grand F-1 event in 2014 October. But the planned series has now been postponed to March 2015.
Even when there was sluggishness in the real estate in India, Buddh International circuit had witnessed hike in house prices last year and the reason for price-hike was supposed to be the Formula One and the Yamuna Expressway.
Though the dropping of this event for 2014 is likely to have a short-term impact on property prices and sales in this part of the National Capital Region (NCR), realty experts believe that, it would not affect the property market over a long-term, or at least it cannot be predicted now, since the realty growth of Noida-Greater Noida is not merely dependent on these two factors.
A year ago, with the entry of F-1 series, developers in these areas were seen demanding buyers to pay premium rates for their projects, alleged a developer. He also assumes that the drop of F-1 would affect the Noida and Greater Noida’s real estate for a short period. Another developer claimed that F-1 dropping will have significant effect on real estate market. Sports lovers were ready to pay premium rates to buy flat in Greater Noida and the postponing of the event may disappoint them which would lead to lesser demand for properties there, he added.
On the flipside, some of the realty biggies said that there will be no negative impact on real estate prices in the area. They said that the postponing of the motor sport event may not limit the growth of the real estate projects in Noida-Greater Noida. No developer had promoted his projects with the help of this event so this would not likely pose any threat to the property prices or sales in that area.
Jaypee Group which has developed several residential projects in Noida- Greater Noida continues to be hopeful about the market and it is also cheerful as the project has been postponed and not cancelled. Many other leading realty developers including Amrapali, Parsvnath, Supertech, DLF, etc have invested in this region and have been yielding good returns.However, commercial real estate in this part would witness a slowdown as the event has been postponed.
