Demand for residential units in all parts of the National Capital Region (NCR) has shown a positive trend. The strong demand for residential units has led to a rise in prices in almost all the micro markets in the NCR.
Demand for residential real estate in Noida and Greater Noida markets has also picked up substantially in the last two years. This led to a rise in supply of residential units in various price bands ranging from Rs 2,000 per sq feet to Rs 8,000 per sq feet in the market.
However, the region also saw a temporary hiccup in the supply side after the Allahabad high court decided to cancel the acquisition of land from farmers in the Noida Extension area by the Greater Noida authority. But, issues are likely to be settled as the farmers have accepted the increased compensation. It is expected that construction in the region will start soon.
The most encouraging thing is the development by the Noida and Greater Noida authority of good infrastructure like a network of roads and the Metro link to connect the region with the central part of Delhi.
The Metro and road network had already improved after New Delhi hosted the Commonwealth Games in 2010. The decision to build the Games Village in East Delhi, in particular, led to considerable improvement in the road and Metro network in Noida and East Delhi.
The good thing is that the authorities have not left things to drift after that, and took proactive measures to improve connectivity of the area to other parts of the NCR further. Even today, the farthest point in Noida is not more than 40 minutes by road from Connaught Place. The city is also connected by the Delhi Metro rail to Connaught Place and the central secretariat, with the commute time being only about 30 minutes.
The authorities of these twin cities have now decided to extend the Metro further to Greater Noida and construct more Metro lines to create new alignments, so that residents of these places will not have to travel much to catch a train. On top of this, the Metro connectivity will now be extended to Noida Extension also, which is a part of Greater Noida. This will also be beneficial to another township, Crossings Republik.
With the various alignments of the Metro, connectivity to areas like Sectors 50, 51, 71, 74, 78, 81, 137, 143, 144, 147, 149, 150, and 153 in Noida will improve substantially. The proposed alignment will also improve the connectivity to Pari Chowk, Sectors Alpha 1, Alpha 2 and other parts of Greater Noida.
The best part of this is that apartments in Noida and Greater Noida, and Noida Extension in particular, are in the affordable range for the average middle-income group, despite the fact that prices have risen substantially in Sectors 74, 78, 143, and 147 in the last one year.
Despite rise in prices, one can buy a two-bedroom apartment for around Rs 30 lakh in Noida. In fact, some developers are selling smaller units for as little as Rs 27 lakh. With fresh launch of projects in Noida Extension, the availability of affordable apartments will further improve.
Around 2,00,000 apartments are likely to be built in Noida Extension area in the next five years. In 2010, when most of the housing projects were launched in the area, it was one of the most attractive destinations for buying affordable houses. Developers were selling two-bedroom apartments for Rs 16-22 lakh. A three-bedroom apartment was available for as low as Rs 24 lakh. At these prices, one could not have bought a similar apartment even in B-grade cities. But as the region went through a difficult time in the last 15-20 months, prices are likely to go up. However, developers have not disclosed the new prices; sources say they will be in the range of Rs 2,700-3,200 per sq feet.
As the distance from this area to Connaught Place is only around 18km and commuting time is around 35 minutes by car, the area is suitable for middle-class families. With the entry of the Metro line into the area, accessibility of the area will improve further.
Noida and Greater Noida are having a flurry of developments in the other sectors as well with around a dozen projects being implemented in Sectors 74, 75, 76, 77 and 78. According to one estimate, a total of around 20,000 apartments are being built in these sectors.
Besides these sectors, a large number of projects are being developed on Noida-Greater Noida Expressway. Around 1,25,000 apartments will be constructed on both sides of the expressway. At present around 30,000 apartments are up for sale by various developers here.
A number of premium projects like Unitech’s Golf Home, Jaypee’s Boomerang Residency, Krescent, Orchards and Golden Isles, among others, are available. The area will also be the site for the highest proposed building so far in the NCR — Supernova — by Supertech. A clean approach from central and South Delhi increases the attraction of this region.
Besides excellent road connectivity, the region also gets ample groundwater and a steady supply of Ganga water. The infrastructure in the region is being developed by the Noida and Greater Noida authorities, which are government bodies. Therefore, there is no compromise in quality and size.
Besides physical infrastructure, the area has good social infrastructure like schools, hospitals and shopping malls. The only area where Noida and Greater Noida lag behind Gurgaon is the number of operating commercial establishments. Because of this, both the suburbs lag immensely in creating jobs for their residents, forcing them to look for employment in other parts of the NCR.
But, large developers like Jaypee and Unitech, which have entered the Noida market in the last five years, have planned to build high-quality commercial space in Noida and Greater Noida. This might change the landscape of the suburbs by providing residents jobs at a walking distance ; also, it would lead to appreciation in the prices of residential real estate, which in turn would be a huge opportunity for investors.