Noida, a city once celebrated as a promising destination for affordable housing, is now grappling with a significant shift that threatens to put homeownership further out of reach for many. Originally designed to offer a cost-effective alternative to Delhi’s expensive housing market, Noida is experiencing a dramatic surge in property prices, making the dream of affordable housing seem increasingly unattainable for the urban middle class.
Property prices in Noida have escalated to eye-watering levels, with current rates ranging between Rs 16,000 and Rs 20,000 per square foot in the main city areas. In Greater Noida and Greater Noida West, while the prices are slightly lower, they still remain substantial, ranging from Rs 7,000 to Rs 10,000 per square foot. This rise in property prices has rendered the concept of "affordable housing" almost meaningless, as the cost of purchasing even modest-sized homes has become prohibitively high for many prospective buyers.
Compounding the problem is the proposed 25% increase in circle rates, a measure currently under review by local authorities. Circle rates are crucial as they establish the minimum value at which a property must be registered and impact the calculation of property taxes. The proposed hike aims to reflect Noida’s growing status as a prime urban hub. However, many fear that this adjustment will only deepen the affordability crisis, making it even more challenging for middle-class buyers to enter the housing market.
Abhishek Kumar, president of the New Era Flat Owners Welfare Association (NEFOWA), has voiced strong criticism of the sharp rise in property rates. He argues that this increase is driven by a "false bubble" created by builders and dealers, who have inflated prices beyond reasonable levels. Kumar points out that areas like Noida Extension, now known as Greater Noida West, were originally developed to serve the middle class. Yet, prices for even basic 950 square foot flats have soared to Rs 67-70 lakh, a figure that is out of reach for many families. He also highlights the deteriorating state of infrastructure in these areas, such as poorly maintained roads and worsening traffic congestion, which fails to justify the rapid escalation in property prices.
The proposed hike in circle rates is viewed by many as a final blow to an already strained housing market. Kumar and other experts argue that revising circle rates without addressing existing issues sends a troubling message: that the priority is on maximizing revenue rather than addressing the needs of ordinary residents. There is concern that the increase will provide builders and dealers with justification to further inflate property prices, exacerbating the already severe affordability issues.
Property experts, including Ujjwal Mishra, co-founder of Blue House Consulting, share these concerns. Mishra notes that Noida and similar satellite cities were initially intended to offer affordable housing options and alleviate the congestion in Delhi. However, the current trend of rising property rates is shifting the market focus away from middle-class families toward upper-middle-class buyers. This shift pushes the dream of affordable housing even further out of reach for those who initially intended to benefit from these housing developments.
The potential 25% increase in circle rates could have widespread ramifications. Buyers might face higher registration taxes, and developers could use the rate hike as an excuse to further raise property prices. For many middle-class families, the aspiration of owning a home in Noida—once an attractive alternative to Delhi’s high-cost housing market—now appears to be fading.
As the local administration considers the proposal, there is growing anxiety among residents and experts alike. The increase in circle rates could potentially diminish the prospects of homeownership for many, casting a shadow over Noida’s reputation as an affordable housing destination. Kumar emphasizes that the issue goes beyond mere numbers; it concerns people’s lives, their dreams of securing stable housing, and their ability to provide for their families. The challenge for the government is to ensure that Noida’s housing market does not lose sight of its original mission and continues to meet the needs of its intended beneficiaries. For now, the middle-class families in Noida are left pondering whether the city’s promise of affordable housing was ever a reality or merely an elusive dream.
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