Supertech's twin tower demolition pushes buyers on backfoot again, under-construction projects hit
India Today
Potential buyers are avoiding under-construction projects, and the ready-to-move properties are slowly going out of reach of many. The under-construction projects are affordable. But the trust deficit, deepened by the Twin Towers’ demolition orders, is taking a toll on the entire sector.
The demolition orders of Supertech’s Twin Towers in Noida sent shockwaves in the realty sector with potential buyers going on the back-foot, putting several under-construction projects in limbo.
Potential buyers are avoiding under-construction projects, and the ready-to-move properties are slowly going out of reach of many. The under-construction projects are affordable. But the trust deficit, deepened by the Twin Towers’ demolition orders, is taking a toll on the entire sector.
“There are cases of many small and medium builders selling their under-construction projects to big builders due to lower sales. At least two such cases have happened very recently in the past 6-8 months. The reason behind this is suspicion of potential buyers, increased by the demolition orders on under-construction projects. The small and medium builders unable to sell flats are now selling their entire project to those who are capable of completing it while bearing the brunt of lesser sales,” said Manish Kumar, secretary, Noida Extension Flat Owner's Welfare Association (Nefowa).
Also Read: | Gone in 9 seconds: How 4,000 kg explosives will bring down Supertech's illegal twin towers
The rates of ready-to-move-in properties have also increased with the rising demand. There is a difference of Rs 10-12 lakh between the ready-to-move-in and under-construction properties.
“In the entire affordable housing sector of Noida, Greater Noida and Ghaziabad, an average ready-to-move-in flat of 2BHK costs around Rs 50-55 lakh while the under-construction rates are Rs 35-40 lakh for the same. This is due to the rise in demand for ready-to-move-in as they are considered problem-free. The demolition order has decreased the demand for under-construction flats,” said Ujjwal Mishra, owner, Blue House Properties.
The Twin Towers are scheduled to be demolished with the help of explosives next month.
