Sunday, 5 July 2015

Noida: Preferred destination for new realty projects


There is increased buoyancy in the market after the arrival of the new government, especially after the Budget has set the ball rolling for the real estate sector. With allocation of more funds for affordable housing, easing of FDI norms, implementation of REITs and special focus on infrastructure development, the government has made it clear that in order to push economic growth, a special focus on infrastructure and real estate development is pivotal. In the foreseeable future, the real estate market in Delhi NCR is going to see considerable forward momentum.

As land is a prerequisite for any kind of development, Noida and Gurgaon are the logical answers to the burgeoning need for housing in Delhi NCR. In terms of inventory, Noida and Gurgaon have more options than any other city in the NCR. These two areas are consequently expanding and growing, and expansion opens opportunities for further growth in real estate. It is for this reason that these two cities now have mature real estate markets for different sets of buyers and investors.

However, they have very individual returns potential. In the last few years, it appears that investments made into properties located in Gurgaon have reaped better returns than those secured from properties in Noida. However, Noida is not lagging very far behind. Various recent announcements and the infrastructure uplifts of the city have made Noida’s real estate market increasingly attractive.

What favours investors entering Noida is the lower pricing factor, which now promises better appreciation and returns on investments. The realty market in Gurgaon has now crystallised into one most favourable for buyers in the premium segment. But the other side of the coin is that the high price points in Gurgaon suggest that properties there will no longer fetch high rates of appreciation.

With the fast-paced development in infrastructure in Noida and its vicinity, real estate growth has really picked up over the past few years. There have been announcements for many new such projects as well, which has had a positive effect on the real estate market.

The proposed extension of the Dwarka-Noida City Center to Pari Chowk will give direct connectivity to Delhi and other NCR areas, and the project is expected to complete by 2021. The Noida Metro Rail Corporation (NMRC) has got the required approvals for the 29 km-long Noida-Greater Noida Metro link from the state government, as well. Simultaneously, the Greater Noida Industrial Development Authority (GNIDA) has plans to set up its own power plant, which will provide uninterrupted power supply to the region. Though Noida is known for its affordable housing projects, there are numerous luxury projects underway as well as in the pipeline in Noida and its adjoining areas. Renowned developers like Supertech, 3C Company, Prateek Group, Lotus Greens and Wave Infratech have launched super-luxury projects with 3-5 BHK apartments of 2,000-4,000 sq ft and priced in the range of Rs 1 crore to 3 crore.

With good infrastructure, metro connectivity and good road network, real estate development in the Noida regions is picking up rapidly. This is important, since infrastructure development is the primary draw for buyers and investors into this area. Upcoming major projects like the Export Promotion Zones and Taj Economic Zone along the Yamuna Expressway are likely to push the economic development of this region, consequently giving a further boost to real estate development.

In fact, the positive response from buyers and investors in Noida has now made this the preferred destination for launching new projects and expediting existing ones. All in all, Noida is beginning to emerge as one of the brightest stars in Delhi NCR real estate.

SOURCE: THE INDIAN EXPRESS

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