Noida Authority Approves Two More Projects Under Co-Development Policy
Noida authority has recently given approval to two projects under the co-development policy of the Uttar Pradesh government. This move aims to revive stalled projects in the Noida region and will benefit around 1,000 homebuyers. The two projects approved are the Sunworld Residency project in sector 168, which will be taken over by Nimbus Projects, and another project in sector 115, which will be taken over by Theme County.
The co-development policy allows new developers to take over partially delivered or stalled projects and ensures that pending dues to the authority are paid off. The new developers are also responsible for the financial closure and completion of the projects. This initiative is expected to address the issues faced by the homebuyers and provide necessary funds for the construction work.
According to the Confederation of Real Estate Developers’ Associations of India (CREDAI), there are approximately 190,000 units worth Rs 1 lakh crore stuck in Noida, Greater Noida, and Ghaziabad. In the Greater Noida region alone, there are around 36 real estate projects facing insolvency proceedings. The approval of these two projects under the co-development policy will help in resolving the challenges faced by the real estate sector in this region.
Easing the Burden of Stalled Projects
The approval of the Sunworld Residency project and the project in sector 115 is a significant step towards reducing the number of stalled projects in the Noida region. Earlier, realty developer Hawelia Group had taken over the Shree Radha Sky Garden project in Greater Noida as part of the co-development policy. These initiatives aim to address the issue of legacy stalled projects that have been pending for several years.
Under the co-development policy, the new developers are required to settle any RERA cases filed by the buyers. It is estimated that approximately Rs 40,000 crore is due to the Noida, Greater Noida, and Yamuna Expressway authorities from various real estate projects. This includes the payment of premiums, interest, and penal interest on the allotted plots. The co-development policy ensures that the financial and legal liabilities of the stalled projects are taken up by the new developers.
So far, developers have only undertaken projects under contractual or debt management models and have avoided any financial or legal liabilities. This has contributed to the persistence of stalled projects in the region. With the implementation of the co-development policy, the new developers can raise debt for the financial closure of projects based on their net worth and credit ratings.
Reviving the Real Estate Sector
The approval of these two projects under the co-development policy is a positive development for the real estate sector in Noida. The revival of stalled projects not only brings relief to the homebuyers but also helps in generating revenue for the local authorities. The stalled projects have been a major concern for both the buyers and the authorities, and this move is expected to bring the much-needed respite.
With the completion of these projects, the Noida authority aims to improve investor confidence and attract more buyers in the region. The real estate sector plays a crucial role in the overall economic growth, and initiatives like the co-development policy contribute towards its stability and progress.
In conclusion, the approval of two more projects under the co-development policy in Noida showcases the government’s commitment to resolving the issues faced by the real estate sector. The involvement of new developers to revive stalled projects will enable the completion of pending constructions and ensure the fulfillment of commitments made to homebuyers. This step is expected to have a positive impact on the real estate market in the region and spur further development in the coming years.
