By Mr.
Santhosh Kumar, JLL India
There is increased buoyancy
in the market after the arrival of the new government, especially after the
budget has set the ball rolling for real estate sector. With allocation of more
funds for affordable housing, easing of FDI norms, implementation of REITs and
the 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 have
now got mature real estate markets for different sets of buyers and investors.
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| Santhosh Kumar, JLL India |
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 Noida property. 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
crystallized 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
kilometer-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 Ltd, 3C Company, Prateek Group, Lotus Greens and Wave Infratech have
launched super-luxury projects with 3-5 BHK apartments of 2000-4000 sq. ft. and
priced in the range of Rs 1 crore to 3 crore for area.
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.
About the author..
Mr. Santhosh Kumar is CEO (Operations), JLL India
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