Greater Noida authority allocates 18 plots taken in a week

GREATER NOIDA: The Greater Noida Industrial Development Authority (GNIDA) has allocated
18 industrial and commercial plots over the past one week, a feat that points to a recovery in the
real estate sector post the pandemic.
While 14 of the plots are for setting up industry, only four are for commercial purposes. Officials
said while the industrial and residential schemes of the development authorities had been
generating response, it was the first time in almost five years that so many bidders showed
interest in taking commercial plots. The 18 plots have been sold at 100% premium and have
commanded double the reserve rates during the auction.
GNIDA had last week launched a commercial scheme comprising five plots in total, with the
smallest one measuring 1,200 sqmt in Delta 2 and the largest one in Eta 1 that is spread over
7,455 sqmt. The remaining three plots have been developed in sectors P4 and 36. Barring the
Eta 1 plot, the remaining four have been taken up by entrepreneurs.

Apart from the positive response to the 18 plots, the revised payment conditions introduced this
year have been an added advantage. Allottees now need to deposit 50% of the entire land
premium within 60 days and the remaining 50% over the next four years in installments.
It is also the first time in five years that GNIDA has been able to allocate an inventory of multiple
plots in the first attempt. Chief executive officer Narendra Bhooshan said there were multiple
entries for the plots. “The largest of them all, at Eta 1, will have to be carried forward in the next
scheme among the five commercial plots. We got encouraging response for the remaining,” he
added.
Authority officials are now exploring the option of dividing the Eta 1 plot into two or more
portions as market players have said that large-scale commercial development can only be
planned in phases and in keeping with the demand.
Aditya Bansal, a partner in a commercial real estate brokerage firm in NCR, expressed similar
views. “The demand for commercial outlets and organised office space has gone down over the
past two years due to the pandemic. But at the same time, small and local businesses have
grown. Market players are sensing pent-up demand for both residential and commercial real
estate. But blocking large commercial estate does not make sense as realty companies are
facing liquidity crisis and can hold on to vacant land parcels only up to a point,” he added.
A total of 33 bidders had shown interest in the recently launched plot schemes, officials said.
Local market players feel that the high commercial rates in Noida have had an effect on Greater
Noida as well. Subodh Goel, the CREDAI (western UP) secretary, said, “Rates of Greater Noida
are lower in comparison to that in Noida. Also, less commercial activity could be seen in Greater
Noida East compared to the West.”
The rates of commercial plots with 2 FAR in Noida are almost three times that of the ones
available with GNIDA. While the average reserve rate of plots taken up in the latest scheme in
Greater Noida hovered around Rs 45,000 for a sqmt, a plot in the urbanised sectors of Noida
would cost Rs 1.4 lakh for a sqmt.
The 14 industrial plots last week fetched Rs 130 crore in total. The entrepreneurs who have
taken the plots have given commitment to bring in Rs 800 crore of investments and generate
2,000 jobs. The industrial scheme comprised plots in various sectors of Ecotech block.