Understanding Noida’s Popular Neighbourhoods for Renting: Take a Look at the Emerging Trends

The vibrant satellite city of Noida, located in the National Capital Region (NCR) of India, has undergone significant development in recent times. Recognized for its strategic positioning, modern infrastructure, and evolving urban atmosphere, Noida has witnessed remarkable expansion, solidifying its position as a key real estate centre in the region. Over the years, the region has become a preferred destination for individuals seeking quality rental accommodations. With diverse housing options on offer, Noida’s rental market today presents a compelling narrative of a city in flux, adapting to the evolving needs and preferences of its residents.

Increased Inclination Towards Renting Homes

Since the early 2000s, Noida has witnessed a significant surge in the services and IT sectors, fostering rapid growth in both commercial and residential real estate. However, it has encountered a relative drawback compared to Gurugram due to its distance from the international airport. Besides, the residential real estate market in Noida, which thrived in the initial half of the preceding decade, has also faced challenges such as legal disputes, defaulting developers, and unfinished projects in recent years. Consequently, it is unsurprising that a majority of homebuyers (75 per cent) now prefer ready-to-occupy apartments, given the prevailing decline in consumer confidence.

The dearth of suitable offerings, coupled with a limited influx of new residential supply primarily concentrated in the INR 1–1.5 crores price range, has prompted end-users and individuals returning post-pandemic to lean towards renting homes.

What are the Preferred Localities for Renting?

An analysis of rental patterns indicates a prevailing preference among potential homebuyers for properties situated in close proximity to commercial centres along the Noida-Greater Noida Expressway and in the vicinity of the entry point of the Delhi Noida Direct Expressway.

The preference for rental properties in these locations can be attributed to several advantageous factors. The strategic location of these areas ensures easy accessibility to major business hubs, fostering convenience for professionals commuting daily. This proximity translates into reduced travel time, making it an attractive proposition for those seeking a seamless work-life balance. The Noida-Greater Noida Expressway is a thriving commercial corridor with a plethora of corporate offices, shopping complexes, and entertainment options. Choosing rental accommodations in this area provides residents with the advantage of a vibrant and well-developed urban environment, enhancing their overall lifestyle.

Meanwhile, the entry point of the Delhi Noida Direct Expressway holds significance due to its connectivity with the national capital. Renting homes in this vicinity offers the advantage of convenient travel to Delhi, broadening the scope of employment opportunities, cultural experiences, and social engagements. Ultimately, the preference for these locations underscores the significance of accessibility, vibrant surroundings, and enhanced lifestyle, making them sought-after choices for potential renters in Noida.

Rapid Rise of Rental Values

Aligned with growth in demand for rental housing, the current rent index for Noida as per our findings stands at 197 points, starkly differing from the buy index at 104 points. The surge in demand has not only raised rental costs but has consistently driven them to increase more rapidly than property values.

The price-to-rent ratio in Noida is 33, surpassing its counterpart Gurugram, signalling comparatively diminished returns. Presently, the median monthly rents in Noida fall within the bracket of INR 27,000–33,000.

Future Perspective

In the last two years, Noida has witnessed a swift surge in both rental demand and monthly rents. Additionally, the impending airport in Jewar is expected to draw increased interest from international companies looking to establish their operations in the city. The anticipated development outlined in the latest master plan for the Dadri-Noida-Ghaziabad Investment Region is also projected to contribute to the growth, attracting more working professionals to the vicinity of Noida city.

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