Still Owning a flat is out of Reach for Weaker Sections in Noida

Noida, a gold mine for realtors, is considered as the best Indian city for living and housing. With a large number of IT and ITeS companies setting up their base in Noida, the city has witnessed a considerable increase in population. Consequently, there is a greater need for residential properties. The increase in the higher income population working in various multinational companies has led to the rise of the luxury housing sector in the city. At the same time, many affordable housing projects are offered by a number of builders and developers for the middle income individuals. However, none of the low cost residential projects address the housing needs of the economically weaker sections in Noida. Even the cheapest flats with bare minimum facilities are not affordable for this segment of society say experts at Property.Sulekha.com.

Courtesy: Net

Noida Residential Market

The residential property market in Delhi-NCR that includes Noida is one of the costliest in India. It is impossible even for an individual with an annual income of Rs. 15 lakh to afford to buy or rent a house or flat in this region. The average price in Noida is Rs. 3,300 per square feet. A small, 1 BHK flat in Noida in 300–400 square feet would cost around Rs. 10 lakh. For an individual with a monthly income of Rs. 10,000 and less, buying such a property is always out of reach. 20% of the total cost of the house has to be paid as down payment. For home loans, EMI is about 50% of the monthly take home salary. Property tax will come to 1.5% of the property value. Even if the individual saves 25% of his annual income, it will take years before he can pay at least the down payment for the house. By that time property prices would have increased. Considering the fact that the tenure for a home loan is 15–20 years, and that only a certain percentage of the property value is provided as home loan, approaching a bank also seems out of question.

Affordability of government housing schemes

Many low cost housing projects are being planned and launched by the local and state governments to meet the residential needs of the Economically Weaker Section (EWS) and Low Income Groups (LIG). Most such schemes offer flats ranging from Rs. 15 to Rs 30 lakh for 350–750 square feet, most of which are beyond reach for the intended beneficiaries.