Homebuyers who have invested their life savings in real estate projects in the eco-sensitive region of Noida can breathe a sigh of relief. The draft notification of the eco-sensitive zone around the Okhla Bird Sanctuary has been cleared by the Union Environment Ministry, which will provide relief to about 55,000 homebuyers. A revision of the rules will now enable builders to complete under-construction projects that were built in this area. Additionally, stalled real estate projects will be issued completion certificates.
Despite this development, homebuyers are questioning their investments. Let’s see why.
A Temporary Relief to Homebuyers
According to CommonFloor.com, the ecologically sensitive area around the Okhla Bird Sanctuary that was initially 10 km, has been reduced to an area of 100 meters from the eastern, western, and southern boundaries of the sanctuary. The zone will extend to approximately 1.3 km from the northern boundary.
This decision has enabled developers to resume stalled residential projects in the area and receive completion certificates from the authorities. Homebuyers are doubly relieved as they will finally be able to move into their homes. About 36,000 flats and 5 to 6 commercial projects will see the light of day after getting environmental clearances.
The real estate market of Noida will see a positive leap with many other residential and commercial developments opening up. Office and retail spaces will also be available for lease, improving business in the region. The dwindling interest rates and increased focus on infrastructure development will attract homebuyers, which will boost housing sales.
A Sanctuary No More
About a year and a half ago, the National Green Tribunal had asked the Noida Authority to halt constructions within a 10-km radius of the Okhla Bird Sanctuary. Owing to a decline of its forest cover, the Sanctuary is devoid of many birds that had, once, made it their home. Commercial complexes, residential projects, expressways, and parks have driven away the large bird populace. This provoked the National Green Tribunal to demarcate a 10 km radius around the sanctuary to preserve its main attractions.
This caused considerable distress to investors, builders, and homeowners as their projects were stalled and deemed illegal. More than 40 real estate developers and over 50,000 homeowners were affected by this ruling. The local economy had suffered to the tune of INR 2000 crores.
Major Concerns Over Investments
Homebuyers are not rejoicing over this progress yet. The ban has cast doubts over the future of these homes. Emotional and financial security is still a major issue for homebuyers. Some of the primary concerns of home buyers are:
- Those who bought their homes thinking it to be a good investment are now questioning if it’ll lead to a good return.
- The drop in real estate prices will take about 2 to 3 years to recover, which will set back their financial plans.
- Till the market picks up they will have to continue paying EMIs.
- Further litigations may ensue.
- The National Green Tribunal (NGT) has cleared and amended the current law. If it changes its mind and re-enacts the law, homebuyers will be inconvenienced again and made to wait another few years.
- A different government may choose to nullify the current law and issue a fresh one with even stricter rules.
The National Green Tribunal has lightened the load for many homebuyers by relaxing its environmental rules. Homebuyers are hopeful that their homes are secure. But, they are still wary of the various problems and ambiguities in the law that may come up in future. Any further hopes of investing will take a back seat unless the government assures them a secure and litigation-free home.
Get more of real estate
Subscribe to our mailing list and get interesting real estate stuff updates to your email inbox.