The land row in Noida may have been settled, but property prices are now expected to go up by 15-25% in a month. The Noida Authority has to give 5% developed land to farmers - which will deplete all its land resources.
"We will exhaust all our land after giving 5% to farmers. Prices in Noida are bound to rise as there will be no land to give to developers," said Balvinder Kumar, chairman, Noida Authority.
To meet the rising demand for homes, offices and institutions, the authority will now have to consider enhancement of floor area ratio (FAR), he added.
Developers said that the land acquisition act will make it both difficult and costly to acquire new land. "If we buy land at a higher price, we will have to load it on to the buyers. The new policy, if implemented, will increase the cost of apartments steeply," said Shakti Nath, managing director of Logix Group.
At the moment, there is a shortage of clear land in Noida and the few developers who still have undeveloped land with them will cash in on the situation. The executive director of Amrapali Developers, Shiv Priya, said that he expected property prices in the city to go up at least 25% in 10-15 days.
Emboldened by the court decisions in favour of farmers in Greater Noida, farmers in Noida had demanded enhanced compensation for their land, regularisation and development of their abadi lands and 5% of developed land that was promised when land was acquired.
While the demand for higher compensation has not been accepted, the Noida Authority has agreed to other demands. This has put pressure on the authority, which has to now provide for 700 acres of land to farmers. It only has 300 acres of land in its bank that was reserved for housing projects.
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