Noida International Airport may spur 30-40% increase in land prices: CEO YEIDA

Under Construction Jewar Airport

Noida International Airport, the flagship project of the Uttar Pradesh government, is expected to lead to a 30 to 40 percent increase in current land prices in the next one-and-a-half years, according to a top official.

“Land prices in the area are already high and I see a further growth of 30 to 40 percent from here in the next one-and-a-half years,” Arun Vir Singh, CEO of Noida International Airport Ltd. and Yamuna Expressway Industrial Development Authority (YEIDA), told Moneycontrol in an exclusive interview.

The first phase of the upcoming airport, located near Jewar east of the Yamuna Expressway, is expected to be opened in March 2024. The airport’s proximity to the expressway will facilitate tourist travel to Agra, Mathura and Vrindavan.

Singh said the Authority has already increased land rates in the area.

“That’s because we have decided to give more compensation to farmers [for land] for the airport as well as for the industrial area. And since they are the major stakeholders and it is their land on which we are building, we decided to give more money to them. And to compensate for that, we have increased the property rates,” he said.

YEIDA increased land allotment rates last month by 30 to 35 percent for different categories of plots as demand shot up in the region on account of the upcoming Noida international airport as well as other infrastructure projects. The rates were hiked for all segments – residential, industrial and commercial.

Housing project

In the residential category, rates have been increased 32.9 percent to Rs 24,600 per sqm from Rs 18,510 per sqm earlier. Land rates for group housing schemes have been hiked 32.8 percent to Rs 30,750 per sqm.

The Authority revised the rates for commercial land plots (floor area ratio up to 2) by 29.47 percent to Rs 49,200 per sqm. For commercial plots with an FAR above 2, the increase is 28.47 percent. The rates for industrial land plots were increased 40 percent to Rs 13,542 per sqm.

Singh said YEIDA is expected to come up with a group housing scheme soon. It will come up on three plots in Sector 22D of YEIDA. Two of these plots measure 45,000 sqm, while the third has an area of 60,000 sqm.

Officials said the planned housing scheme would be the first in nine years. YEIDA had previously launched a group housing scheme in 2014.

Singh said that investors should be wary of fraudulent schemes near Jewar airport. Such schemes would be illegal because the area has been notified.

“We have floated residential plots schemes often and people have come forward for those. But due to the upcoming Jewar airport, many fake companies are approaching innocent people to invest there. They all are illegal because the area is notified. The Industrial Act is a special act with overriding powers. So nobody can erect any building whatsoever without the prior permission of the authority,” he added.

People should not fall prey to these things and “should approach the authority and investment should be made only into government-approved allotments,” he said.