Is it safe to invest in Noida Extension? Are there any legal problems? Will Metro reach there in 2016-17?
The Question Posted on Quora Noida Extension and the answers are below:
This answer is for those who want to invest only for property appreciation.
Noida extension is the area where lots of construction work can be seen all around. They will tell you metro is coming, hindon bridges will connect it with noida sector so and so, blah blah blah. But nobody is talking about the requirement of homes in that area. No major industry at the moment over there whose employee may “fill” the flats and projects that are already completed (e.g Crossings Republik has only 30% occupancy, they may say its GZB, but they are all in the same area). Even if IT sector comes up in that area, supply of houses is far greater than the demand that can ever be generated over there. According to a survey in GZB, some 1.5 crore houses are required for the city and almost same amount of houses are vacant there.
They question rises- Then what is happening there!!! WHY THE PRICES ARE RISING!!!
Majority of the people investing in NOIDA Extension have intentions of selling the property after some years and enjoy the appreciation. NOBODY IS INVESTING THERE FOR RESIDENCE PURPOSE. As a result there is inflation of property prices. The builders decide the prices as per the demand and will. Every month or so they increase the prices. This makes the investors believe that there money is getting appreciated. THIS IS CREATING A FAKE DEMAND OF FLATS.
Now consider this :
Suppose you buy a flat today. In three years your flat is ready and you have paid all the money. Metro is also there. Now you will want to sell it. You will want to sell it because of 2 reasons :
- Once the project is ready, Society charges of around 2k per month will start. Initially it doesnt look much, but with time it kind of gets into your head.
- The flats construction quality is bad in most of the projects. This is not visible from distance. Flats life goes down considerably with time.
Now there are thousands of people like you who want to sell their flats. NUMBER OF SUPPLIERS>>>> DEMAND… there is NO WAY you can sell it with ease because everyone like you will be trying to sell their properties. in this situation you can well imagine what is going to happen to your property value.
All I am saying is, it wont be easy AT ALL to sell your flat and current appreciation in property in that area is ARTIFICIALLY INFLATED.
Answer-2 Nitin Kumar-
Yes, it is safe to invest in Noida Extension and there are no any legal issue because in Noida Extension there are ample of residential and commercial project is ready to move. I m not sure about metro will be reach or not in 2016/2017 but you assure about metro because metro is being planned at this venue.