Greater Noida is a ghost town
Greater Noida has hundreds of housing societies. The city also has ample greenery, parking and other amenities. But, it does not have enough residents.
What’s going on?
- 4 out of five houses are vacant.
- Occupancy levels vary between 10 to 40%.
- It aimed to attract 10 lakh residents by 2011, instead there are nearly 1 lakh residents.
Why did it become so?
Government started building the city in 1992, after Noida ran out of space. It ran into problems because…
- Lack of economic activity did not attract people. Though, it has dedicated areas for education, technology, manufacturing etc. not many companies and band opened in Greater Noida. As a result there are few people, who want to buy the houses here. Most buyers are investors or retired officials.
- Builders and the authority anticipated high demand, hence high property rates. Prices were comparable with Noida and Gurgaon. People preferred buying there.
- Access to the city is either by crowded Dadri highway or expressway. On both the routes public transport is inadequate. Opening up of metro may solve the problem.
- Law and order has always been an issue with cities of UP. Since it’s an authority, and not a city, the policing is that of a town. Fear of crime stops people from moving here.
Why it matters for Delhi-NCR?
Real estate is an important economic indicator. If it doesn’t grow, it is a bad sign for the economy. It gives employment to lakhs of people. It helps in reducing the poverty. It’s not local, as other cities in India are facing the same problems.
- Lavassa Link
- Amby Valley Link
- China Link
Experts’ take: Rakesh Jjunjhunwala predicts recovery, but…
Financial experts like Rakesh Jhujunwala predict that the prices will not go up, however volumes will make up for the price.
So, the centre and the local governments should double down on reviving the economy. Only then the real estate sector will pick up.
Worth your time: Watch his interview, where he predicts about the future of the economy. He is positive.
