Recent developments in Noida Extension, also known as Greater Noida, have attracted significant buyer interest towards the region’s residential real estate landscape.
According to a recent report by ANAROCK Property Consultants, with more than 50 per cent of the supply (since 2015) in the under-Rs 40-lakhs price segment, Greater Noida has been rightly tagged as the ‘affordable hotspot’ of the entire National Capital Region (NCR). The increasing focus given to affordable housing, by the central government and developers alike, has also helped.
Backed by major infrastructure developments, the region is set to be one of the most promising affordable real estate investment destinations in the NCR. Major projects envisaged for the region include the Noida-Greater Noida Metro extension, the proposed international airport at Jewar, the upcoming Faridabad-Noida-Ghaziabad (FNG) Expressway and further development of social infrastructure in the vicinity. Furthermore, commercial developments in and around Greater Noida, have also given a significant boost to the realty market.
Can affordable housing drive Greater Noida’s real estate market?
Sunit Sachar, senior vice-president, marketing, CRM and advertising, Parsvnath Developers, points out that the affordable housing segment in Greater Noida, has come up during a period when there has been a decline in demand in the real estate sector. “Affordable housing is always favourable for the buyers, while it is not as profitable for the developer. Developers can rake in much better dividends, from projects other than affordable housing projects. Unless the developer sees profits in venturing into affordable housing, they will not come forward to develop the desired quantum. Hence, concessions in the form of taxes, etc., may be considered,” says Sachar.
Moreover, the affordable housing that has mushroomed in the NCR, is not exclusive to Greater Noida. So, how it impacts real estate development in the satellite city, remains to be seen. Nevertheless, given the recent infrastructure developments, affordable housing is likely to bring some positive attention to the otherwise cautious real estate scenario of Noida Extension.
Impact of infrastructure developments in Greater Noida
In the past, litigation issues over land discouraged investors from the Greater Noida market. However, the news of infrastructure developments, like the Delhi-Noida-Greater Noida Metro connectivity, have generated a lot of interest in the residential property segment.
“The news of the metro connectivity, has indeed had a very positive influence. Once developers come up with more profitable projects in the region, there is a chance that people will get attracted towards the city and invest in it,” adds Sachar.
Delays over the proposal to develop a second international airport in the Delhi-NCR, may have also disappointed property seekers who were keen to invest in Greater Noida, in the last decade or so. However, there now seems to be some progress being made, vis-à-vis the Jewar International Airport, in Gautam Buddh Nagar district. This, along with the government’s push towards bringing in transparency though policy changes and laws like the Real Estate (Regulation and Development) Act (RERA), are likely to bring about a strong perception change, resulting in positive buyer sentiments towards Greater Noida.
Sudipto Chatterjee, business director, Mediacom, feels that there is very little on-ground awareness regarding the affordable housing segment in Greater Noida, or elsewhere in and around Delhi. “However, there is awareness that development, especially with respect to connectivity to the prime locations in Delhi, is happening at a rapid pace in Greater Noida. This adds a lot of interest towards Greater Noida as a residential location,” he concludes.