Amidst the gloom in the real estate market, on account of poor sales and high levels of unsold inventory, Greater Noida continues to outshine other neighbouring markets in the National Capital Region (NCR). The Greater Noida market, which is closer to east Delhi and Noida, is divided primarily into two regions – areas near Noida and the inside sectors neighbouring Ghaziabad and Dadri.
“Affordability and availability of options, make Greater Noida a preferred destination for property buyers,” says Rajesh Kumar of Shri Krishna Realtors, a real estate broker who operates out of Greater Noida.
What makes it a sought after market?
1) Property options
Greater Noida boasts of a number of established and upcoming sectors. The entire region beyond the Noida-Greater Noida Expressway, ahead of Pari Chowk, offers ready-to-move-in properties of different configurations. Beyond Pari Chowk, the city is sub-divided into residential and commercial sectors, such as Alpha, Beta, Gamma, Delta, Pi, Chi-Phi, Eta, Sigma, Mu, RHO, Omega, Omicron and Zeta. The other regions include the Yamuna Expressway and Greater Noida west. The latter is popularly known as Noida Extension.
While some regions are fully-established, several others offer upcoming and under-construction properties. For example, while the sectors Delta and Gamma offer independent freehold, 60-120 sq yard plotted developments, sectors such as Omicron, Pi, Chi and Beta offer mid-range and luxury apartments. Noida Extension has around three lakh under-construction apartment properties. Yamuna Expressway is also witnessing a number of projects from well-known builders.
2) Price advantage
Greater Noida offers properties in the price range of Rs 2,800-4,500 per sq ft, with the established sectors having properties on the higher side of this range. Thus, while a two-bedroom apartment in Alpha Sector may sell between Rs 3,600 and Rs 4,000 per sq ft, new sectors of Greater Noida west may have flats in the range of Rs 2,900-3,200 per sq ft.
“Despite the premium on ready-to-move-in apartments in Greater Noida, investors and buyers are often willing to pay for it, instead of under-construction apartments,” points out Arun Kumar, a real estate broker in the region.
A two-bedroom flat in an established sector, will cost Rs 40-60 lakh, depending on the location. “However, there is always a large cash component in such deals, ranging from 20% to 30%,” informs broker Tarun Ahuja of Ahuja Properties.
Under-construction properties along the Yamuna Expressway, cost Rs 2,800-3,200 per sq ft. However, the overall price across Greater Noida, is lesser than the price range in Noida, Delhi and Gurgaon.
1) Project delays
Greater Noida has seen an average delay of around 35 months, as per industry estimates.
2) Lack of price appreciation
According to a CBRE report – India Residential, H2, 2015, capital values have maintained a status quo in the mid and high-end segments across the region.
“Owing to the large inventory of unsold units, the resale market in Greater Noida has also seen some correction. Against this, the primary segment of Greater Noida west (Noida Extension) hasn’t seen much movement in prices,” adds Arun Kumar.
Despite these challenges, Greater Noida has several advantages. The region is well-connected with Noida, via the Noida-Greater Noida Expressway. A number of sector roads connect the region with Dadri and Ghaziabad. On the other side, the Yamuna Expressway connects the city with Mathura and Agra.
The ongoing expansion of the metro rail, will connect the Noida City Centre metro line to Greater Noida, via the Noida Extension region.
The region also boasts of an integrated industrial township project that is being developed under the Delhi-Mumbai Industrial Corridor.
Moreover, Greater Noida’s residential sectors have all the necessary amenities, such as hospitals, schools, colleges and supermarkets.
What should buyers do?
Developers in the region are focussing on completion of projects in new areas. The previous quarter (January to March), witnessed several launches in the mid-range segment. Buyers looking for quick possession, should opt for established sectors where properties on resale are easily available at a small premium. Those looking to invest at lower rates, can look at under-construction projects.