The real estate arm of once leading player in the market - Jaypee Group - is under insolvency proceeding for years. That, however, is no reason for corporates with interest in the real estate market to stay away from it. According to sources, one of the recent entrants in the race is billionaire Gautam Adani’s real estate arm Adani Realty.
And not without a reason. The Ahmedabad-based group has already made its presence in four cities - including Gururgam in the national capital region. But the Noida real estate market is a hard nut to crack that has kept many leading developers away from it, despite their interests, for years.
Lack of availability of land and clearances required from authorities to acquire land - are two of the most pertinent issues that realtors continue to find difficult to overcome - at least in multiple cases. On the other hand, Jaypee Associates - the parent company of Jaypee’s real estate business that once developed the country’s flagship Yamuna Expressway - a 165 kms 6-lane elevated expressway connecting Noida with Agra - continues to hold large parcels of land along the high speed corridor. As per industry estimates, Jaypee’s land assets adjoining the expressway that includes assets of its flagship Jaypee Infratech - is well over 5,000 acres.
Not only the scale is huge but its is sitting on an asset that is scarce in the region - especially for major real estate developments by any private player. Moreover, the upcoming Noida International Airport in Jewar (UP) has added spice to the curry. With the airport nearing the completion of its first phase and the government authorities jumping into action to boost industrial and residential development around the mega project, Jewar region in the western Uttar Pradesh is soon turning into a hotbed of activities.
The airport site is situated off the expressway - some 60kms from Noida. As a result, since 2018, when work on the Noida International Airport project gained momentum, land prices have jumped manifold. As per industry estimates, price of 1 hectare of land in the region that used to cost Rs 25-28 lakh in 2018 has since increased to Rs 1.
25-1.5 crore in mid-2024 - a jump of more than 400% in 6 years. However, realtors are now highly dependent on government auctions for securing land parcels for their upcoming projects, while Jaypee holds hundreds of acres in the region.
Thus, when Gulshan Group decided to build a 1.5 million sq.ft.
luxury residential project in the area it partnered with Jaypee Group for land. “Availability of land has been an issue in Noida, why many players are unable to launch mage projects in the region. With the airport now coming up, prices are going up every other month.
The land that Jaypee Group holds in the region is more than enough to meet the needs of the developers for a few years. We are awaiting an amicable solution so that the land gets available for auction to realtors like us,” said a top executive of a leading real estate player in the NCR market..
