The Yamuna Expressway Industrial Development Authority (YEIDA) has approved a proposal to ensure that any construction within a 20 km radius of the Noida International Airport adheres strictly to regulations. As such, a ban has been placed on construction for buildings within this 20 km perimeter.
This means that no new buildings can be constructed in the area without following the guidelines set by the Airport Authority of India (AAI). If a building does not comply with AAI's directives, its plan will not be approved. YEIDA CEO R.K. Singh explained that the board is implementing AAI rules to keep flight pathways clear near the airport.
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Singh further stated that AAI has issued a color-coded zoning map, which will soon be implemented following discussions. Additionally, YEIDA plans to hire an expert consultant to survey the entire 20 km region.
With these restrictions, construction will be limited, causing a reduced supply of new properties in the area. Thus, when demand exceeds supply, property and land prices typically rise. Existing builders or owners within this perimeter will see an increase in their property values, benefiting existing projects. Those developers with residential or commercial projects already approved will find themselves in an advantageous position, being able to market their units at premium rates due to their project's prime location.
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Investors planning to purchase plots or land in this sector may encounter difficulties due to these new rules. They must ensure their transactions comply with AAI guidelines. The approval process for any project may now take longer as each will be scrutinized to meet AAI directives, slightly slowing down the pace for builders and investors. Developers who had grand plans for housing and commercial projects in this area may now need to adjust their plans, potentially delaying their projects.
This decision acts as a double-edged sword for the real estate sector. It tends to benefit existing property owners while posing challenges for new investors and developers.
