Noida launches low-income housing scheme, but at a premium price point

NOIDA: In what appears to be a bizarre move at a time the real estate sector is struggling to recover from a prolonged slump, Noida has launched a scheme comprising 354 existing units, with base price at Rs 6,000 per sq ft. This is while thousands of ready flats are available in Noida within Rs 2,800 per sq ft.

After getting possession, buyers are also expected to pay at least Rs 3,600 per month as lease rent. Also, the price per square feet of flats launched for low-income group families is much higher than the ones available for middle and high-income groups.

“I had gone through the brochure and realised that LIG flats are priced at double the rates of MIG and HIG flats. I just do not understand the logic behind such price points,” said Dharmendra Singh, a resident of Sector 61 who had applied for the residential plot scheme November last year but backed out because of the high prices.

For instance, the smallest unit (590 sq ft) being offered is in Sector 71, at Rs 77.6 lakh. That translates into psf rate of more than Rs 13,150, explained Dharmendra. On the other hand, HIG unit available in the G+3 building in Sector 99 measures 1,653 sqft. It has been priced at Rs 1,34,33,425 which translates to Rs 8,100 for a sqft.

Officials said MIG, LIG and HIG units have been priced according to prevailing Authority rates. “Over the years, Noida Authority has launched dozens of G+ 3 storey and duplex flat schemes. The leftover inventory in 10 such buildings have been reintroduced. The scheme was thrown open for public on Wednesday,” said officer on special duty, Kumar Sanjay.

Chief executive officer of the authority, Ritu Maheshwari said that there was no scope to bring down prices from the ones that are on offer. “The scheme has been floated as per the prevailing rates of the sectors,” said Maheshwari.

Those interested in buying a property in the city feel that authority needs to bring prices down to be on a par with the prevailing rates or such schemes will continue to fail.

“Only industrial schemes have been able to generate good response while the remaining schemes have failed to take off. The rates have to be rationalised. But approval of board is required to do so. We will share the results of the recent residential, flat and commercial schemes before the board. Prices will be rationalised post that we are hoping,” said an officer, adding that the existing rates fixed by the authority can only be revised with the permission of the senior officials of the industries department and UP government.