56,000 residential units to come up in Noida by 2014
The Noida real estate has grown much in the last five years in terms of pricing and project launches. However, the city is still primarily known to be an investor market and is facing low occupancy rate. Experts say that the major reasons behind this are delayed projects and less availability of ready-to-move-in apartments.
In order to fight off the low occupancy rates, Noida will soon see a high number of residential units to be delivered by next year. “Out of one lakh units, 56000 units are expected to be delivered in 2014 in Noida, which will certainly have positive impact on demand in the city,” says A K Jain, director, Affinity Solutions.
Noida is considered affordable by the realty buyers as residential prices here range from Rs 4,000-6,000 per sq ft. Whereas, in Delhi the rate is above Rs 15,000 per sq ft and in Gurgaon, it ranges between Rs 10,000 -15,000. “Despite known to be one of the affordable destinations in Delhi, Noida today is facing low occupancy rate. Out of one lakh residential units, only 5000 have been delivered till date in the city,” adds Deepak Batra, CEO, Propworld.
“Lot of projects are getting delayed and are under construction. People who invested about 5 years back are still investors and have not occupied the space as yet. The low levels of occupancy will certainly impact the demand in the city”, adds Jain.
To set a benchmark, he says, if there are 10,000 apartments, at least 6000 units should be occupied to push up the property market.
Another reason to affect the occupancy rate in the city is the flat commercial real estate market. The commercial realty in Noida never really picked up. There are several reasons behind it. Experts say since commercial real estate is sold on super area, it comes with high rental cost, whereas on the other hand industrial space is sold at carpet area. “Commercial space comes along with 40-45 per cent loading space at a rent of Rs 150 per sq ft, whereas the industrial property is available at a rent of Rs 20-30 per sq ft,” says Sanjay Sangwan, director, Kartik Real Estate. “Moreover, with low Floor Area Ratio in Noida, developers are not able to build up huge commercial spaces as demanded by IT companies,” he adds.
So how can the occupancy rate be pushed up? “To bump up the occupancy rate in residential buildings, it is important that IT sector and MNCs shift here. Construction of airport and timely delivery of residential projects will also play a significant role in boosting the property market in Noida,” say Jain.
Posted on November 8, 2013, in Real Estate and tagged Flats in Delhi NCR, Flats in Noida, Greater Noida (WEST), Real Estate Company in India, Real Estate India, Sanjay Rastogi, Sanjay Rastogi Builder, Sanjay Rastogi Builders. Bookmark the permalink. Leave a comment.