The Noida Authority has recently approved a revamped redevelopment policy, mirroring the ongoing initiatives in Mumbai. This move aims to facilitate the release of land in key areas of Noida, Uttar Pradesh, significantly boosting the thriving real estate sector.

As part of this initiative, older flats designated for the economically weaker sections (EWS) will be demolished and replaced with new housing units. Developers will have the opportunity to generate revenue by selling these new properties and constructing larger apartments for the original residents.

A representative from the Noida Authority mentioned, 'We have pinpointed 4-5 buildings that are in poor condition. Initially, a Floor Area Ratio (FAR) of 1.5 was permitted, but now a FAR of 3.5 is allowed. We will issue separate requests for proposals for each building.'

The policy stipulates that the selected developer can sell additional space, provided they also construct larger apartments for the original residents and ensure their accommodation until the old structures are demolished and they can move into their new homes.

Nikhil Hawelia, Managing Director of the Hawelia Group and Secretary of the Industry Body CREDAI (Western UP), commented, 'While this policy is a crucial step towards unlocking valuable land in the city center, each project will present its own set of challenges. The commercial viability of the project is essential, as buyer preferences have evolved recently.'

Yash Miglani, Managing Director of Migsun Group, expressed optimism, stating, 'The Noida Authority's decision could help fulfill the aspiration of owning a home in bustling sectors like 27, 93, and 93A. Allocating higher FAR and involving co-developers in stable projects will meet the long-standing demands of homebuyers and unleash significant potential for modern vertical living.'

The Noida Authority has also approved the participation of co-developers in five stalled projects, which will positively affect over 5,000 customers awaiting possession of their new homes.

According to the Confederation of Real Estate Developers Association of India (CREDAI), around 190,000 housing units are currently stalled in Noida, Greater Noida, and Ghaziabad, amounting to a staggering ₹1 lakh crore. In Greater Noida alone, at least 36 real estate projects are undergoing insolvency proceedings with various creditors.

It is estimated that ₹40,000 crores are owed to the Noida, Greater Noida, and Yamuna Expressway authorities for plots that have been provisionally allotted, with real estate projects at various stages of development, including principal, interest, and penalty charges.

Salil Kumar, Director of Marketing and Business Management at CRC Group, remarked, 'The Noida Authority's initiative represents a progressive move towards urban revitalization, unlocking significant real estate potential in the city's core. Redeveloping old, dilapidated buildings with higher FAR will enhance existing structures and provide improved amenities, ultimately fostering greater homeownership.'