Advantages of buying a Property in Noida

By virtue of its planned development and well-developed infrastructure, Noida is one of the most preferred destinations for buying property in the NCR today. It is one of the most planned regions in the NCR with an excellent road network, drainage and sewerage facilities, water and underground power system. Abounding in reputed schools, retail plazas and malls, restaurant and leisure hotspots, hotel and hospital chains, the city stands out for planned layout of residential and commercial zones. Planned IT parks and industries, which serve as important avenues for providing employment and drawing in homebuyers, add to Noida’s appeal as a self-sustaining city.

Located very close to Delhi, Noida also enjoys excellent multiple connect points with the capital city and other parts of NCR. The social and physical infrastructure is comparable to Delhi, and some would say better than Gurgaon even though property prices are higher in those places. As a result, Noida and its sub-markets have emerged as an alternative cost effective office and residential destination to Delhi and Gurgaon.

The advent of Metro in Noida about five years ago proved to be the tipping point in the region’s accelerated growth and development. Though Noida had come to be regarded as an established industrial and IT hub by the mid-2000s, the enhanced connectivity in the wake of Metro magnified the region’s appeal as a nerve centre of office, retail and residential development. Ever since Metro rail arrived in Noida in 2009, there has been a surge in the number of residential and commercial projects launched in the region. Extension of Metro link to Kalindi Kunj and Greater Noida, expected to be completed by 2017, will further raise the real estate profile of Noida.

With quality infrastructure, metro connectivity and good road network, real estate development in Noida has picked up a fast and furious pace. New and upcoming infrastructure projects are catalyzing fresh demand and growth. Several plans to further improve infrastructure facilities and promote real estate development in line with the revised master plan 2021 has been set in motion by the Noida Authority. Plans are afoot to build and develop more numbers of wide roads, elevated roads, flyovers, underpasses, bridges, roundabouts on expressways and sewer-treatment plants besides also setting up a new 400MW power grid and augmenting and broadening supply of Ganga water to more residential sectors. An estimated Rs.6,000 crore has been budgeted in the current financial year for infrastructure upgrade. The aim obviously is to bring Noida closer to the world city tag it aspires for.

The anticipated gains from prospective developments along with the continuously rising demand for residential, office and commercial space has inspired all major developers to plan and launch new projects. With so much development going on and in the pipeline, real estate here is set to acquire greater value. Quite expectedly, commercial and residential properties stand to gain from handsome capital appreciation over a period of time. This apect alone explains why Noida is such a hot choice for investing in property. To make investments in Noida even more appealing, many upcoming commercial projects today offer 12% assured returns. Factoring in the rental income along with growth in capital value over the years, the rate of return would be much higher.

Returns are no less alluring for investors in residential property as well. Property analysts opine that the appreciation in prices in the already established prime sectors of Noida is 30% annually while in the new and upcoming areas capital value appreciation is 10-15% YoY. As property prices continue to rise due to strong demand, the opportunity to earn large capital returns is very bright. Now, with mixed-use developments on the rise, the chances of appreciation are still higher.

Take, for instance, price trends in Sector-79, one of the prominent localities in Noida where our own Lotus Greens Arena project is coming up. In the April – June quarter of 2014, property prices appreciated to Rs. 4795 per sq. ft. from the quarter earlier. In the July-Sep 2014 quarter, the prices appreciated further to Rs. 4950 per sq. ft. Even in the new emerging pockets, such as those along the Noida Expressway, property prices have risen 9 per cent annually—from Rs. 4,300 per sq. ft. to Rs. 5100 per sq. ft.— between March 2012 and March 2014.

With average property rates in the range of Rs. 4,200-5,000 per sq. ft. and onwards, depending on the size of the property, amenities on offer, and location, Noida offers a wide array of options in the affordable, mid-ticket and luxury housing categories. From budget apartments to luxury villas, commercial complexes to retail spaces and hospitality, there are options and ticket sizes to suit the needs of different pockets and buyer segments. For instance, in prime residential sectors such as 44, 45, 50, 51, the price range of Rs. 5,500 – 9,500/sq.ft. is the general benchmark in the primary and secondary markets.

In the belt encompassing sectors 71- 79, which is currently witnessing good traction, properties are priced in the range of Rs. 4,000- 6,000/ sq.ft. In sectors 93, 96, 97, 98, 100, 110 and 126 to 137 and further to 143, 150, 168, which are aligned with the Noida Expressway, the areas in close vicinity to Delhi command prices the range of Rs. 4,000- 8,000 /sq.ft while price levels are more affordable for sectors comparatively more distant from Delhi.

But for homebuyers looking to a great combination of locational advantage, affordability, and features, sectors such as 78, 79, 75, 76, 82, 100, 104, 110 and upcoming sectors from 116-123, 137, 143, 144, 150 and 168 along the Noida-Greater Noida Expressway offer a large bouquet of investable options with their relatively lower prices and the incentive for future capital appreciation. While demand for mid-ticket housing is high, premium properties too have attracted buyers in prime locations along the expressway such as in Sectors 93, 96, 97, 98, 100, 104, 107.

All these sectors offer great scope for strong and sustained growth for all segments of the realty sector. Many of these locations enjoy mixed land use development, with easy accessibility to malls, schools, colleges, banks, MNCs & IT companies. Development drive in and around these sectors is inching up month by month, hence most of the sectors are poised for massive growth due to the rapid pace of realty expansion. A slew of luxury hotels, office space, retail outlets, and shopping malls are coming up at these locations, which will light up the commercial landscape of the region. With people increasingly looking to live in the affordable areas, demand, prices and rents will keep pushing up in the new emerging areas of Noida in the years to come.

About P. Sahel

As Vice Chairman of Lotus Greens, Sahel is responsible for giving directions on overall business strategy and key investments decisions of the firm. Being one of the founding members of Lotus Greens, Sahel has been instrumental in formulating various company policies, setting up systems and processes, and building a strong team of professionals. Prior to Lotus Greens, Sahel worked for more than 16 years in some of India’s largest and most respected real estate companies like Jones Lang LaSalle for 13 years as the Managing Director of the Markets & Solution Development and DLF prior to that. The views expressed are personal

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