Despite a slowdown in the realty market, Buddh International Circuit had seen a rise in prices of residential properties last year on account of two reasons: Formula One, and Yamuna Expressway.
However, after F-1 boss Bernie Ecclestone announced that the 2014 Indian Grand Prix would be dropped from next year’s Formula 1 calendar, the situation is no longer the same. The Pioneer tried to analyse how much it has affected the real estate market in the area.
Experts hold the view that there will be a short-term impact on the property prices. They say that the long-term impact can’t be guessed now, as Greater Noida has great potential for growth and development.
Gaursons India ltd MD Manoj Gaur maintains that the dropping of F-1 event will have a short-term impact on the sales. “In the past, a few developers were expecting buyers to pay premium rates for their projects due to the F1 track,” said Gaur.
However, Pulse property at Greater Noida strongly believe that F-1 dropping will have substantial effect on real estate market. “This is negative news because motor sport was one of the main factors which excited buyers and they were ready to pay a premium rate for that,” said Ravi from Pulse property.
Echoing almost similar views, Raj Kumar Beniwal of Sujal Estates said: “The motor sport is the star attraction of the area, so there is some premium attached to it. As it is not happening, it may have some negative impact. But the area will be full of other international brands, so the long-term story is intact.”
But there are some other developers and property consultants who say there will be no negative impact on property prices in the area. Supertech limited Chairman & Managing Director RK Arora said, “This cannot be seen as deterrent to the real estate projects in the area as none of the real estate developers projected this event to promote and sell their projects.” However, he admits, “This was one of the main attractions of the projects.”
Similarly Earth Infrastructure Joint Managing Director Vikas Gupta mentioned, “There will be no impact on real estate after the Indian Grand Prix has been dropped from F1 in 2014.”
“I think there will be no effect because F1 is not the sole reason for the realty market in the region,” said Rakesh Bansal from RK Global. “The region has only three lakh population so it’s just an investment destination,” he added. However, Pankaj Saraogi, a real estate consultant in Noida, said, “There will be some effect on sales of JP Sports City…Rest of the developers and projects will not be effected,” he added.