Due to the rise of upper middle class in India, a sense of better lifestyle and good living has made home in the heart of society. Now days, people believe in spending and enjoying rather than saving and worrying. Easy living is the demand of the time.

People now do not compromise on their comfort level. When one comes back home after a day’s work, he just want an ambiance that helps him to unwind. And this statement has proved itself as a boom for the developers since they now provide facilities and get customers as soon as the project launches. The demand in the residential sector is increasing day by day. Also, due to globalization, demand for office spaces has also grown. Thus, it can be easily concluded that realty sector is flourishing to the fullest.

There are large numbers of upcoming projects here located adjacent to Noida’s Sector 121. These face the Noida-Greater Noida Link Road. It is expected that within next three months, this stretch will become operational.

Some of the major features of Noida Extension are:

Prime Location: Noida Extension actually belongs to Greater Noida sector 1. It is a part of NCR and is close to Noida sec. 121 and sec. 119.

Connectivity: One of the best features of Noida Extension is its connectivity across the complete NCR. And the upcoming metro line is acting as cherry on the cake.

Infrastructure: The Noida-Greater Noida Link Road which is 130m wide passes through the area. Also, NH 24 is just 60m away.

Long Term Investment: The area will pick its pace in around a year or two. But once it is full fledged, it won’t lack returns. Thus, it’s a long term investment opportunity.

Options for all: The developers are coming up with all kind of residential projects, office spaces and commercial projects. Thus, Noida Extension will have goodies for everyone.

Affordable Housing: The projects brought up by the developers provide a large range of residential opportunities whose prices will fall in the range of Rs. 9 lakh to Rs. 40 lakhs.

As compared to the residential sector, the demand growth of the commercial sector in past few months is much behind that of the residential one. Not only the office spaces are yet to be occupied, but also the ready projects are unable to seek buyers. This lack of buyer’s interest in the office spaces, multiplexes and retail has forced banks to back off lending to commercial sector.

Other than the uncertain demand scenario for commercial space, banks also have to look and take care of the rising realty sector debt on their ledgers. Ranjan Dhawan, the chief general manager of Punjab National Bank (PNB) said that since some of the banks have reached their sectoral exposure limit, they cannot now get into more lending. He also added that although PNB is still in is exposure limit, still it would get into some other lending only after thorough due-diligence.

For these real estate developers, already reeling under the impact of a crash in property prices and a severe credit crunch, the demand from IT-BPO sector is shrinking fast. The rentals for IT ready-office spaces have already crashed by up to 40%.

India’s IT-BPO sector, which was growing at a breakneck pace of about 30% in the past five years, is expected to be affected by the economic crisis in the US market. Work outsourced by the US firms accounts for about 65% of the revenues of the sector.

Mumbai-based realty firm Housing Development and Infrastructure (HDIL), which is developing two IT SEZs in Kochi and Mumbai, has decided to go slow till the real estate and IT industries make a recovery. “Since rentals have crashed by 25-40%, there is no point developing these projects immediately,” said Ashok Kumar Gupta, a director of the company.

Some developers are offering lower prices to push their projects. Ganesh Housing, which is developing a 6 million square feet SEZ in Gujarat, is negotiating with potential clients. “Gujarat can offer cheaper space compared with IT hubs like Pune and Bangalore,” said Bhavin Mehta, in charge of business development at the company.

Several real estate players in India’s IT capital, Bangalore, are facing the harsh reality. Srinivas Reddy, who has developed some 18,500 square feet space in Bangalore’s Electronic City, has been quoting a rent of Rs 40 per square feet.

Finding no takers, Mr Reddy is now open to negotiations. Bangalore-based Ranka Group, which has developed 1 lakh square feet at KR Puram, finds itself in a similar situation. “We are demanding a rent of Rs 45 per square feet but potential clients are not willing to offer more than Rs 35 per square feet,” said AK Shetdy, the group COO.

Several real estate brokers are now doing the rounds of IT firms to renegotiate lease agreements. “Renegotiations on lease rentals are bound to happen now since the real estate prices have crashed considerably. The biggest problem for the realtors will be the projects that are under construction and those that have not yet been occupied,” said Raman Roy, CMD of Quatrro BPO Solutions.

Consultants say IT companies will increase pressure to reduce rentals when the date of renewal of the lease agreements comes near. “Typically, these lease agreements are signed for a period of three years and have an automatic rental escalation clause. Since rentals have crashed below the levels prevailed 2-3 years back, renegotiations will happen for sure,” said Anshuman Magazine who heads the South Asian operations of global real estate consultancy CB Richard Ellis.