The city is famous for its innovative construction, planned infrastructure, transportation facilities, wide roads, huge shopping malls and commercial complexes. Property prices are also affordable as compared with Delhi and other region of NCR. Hence, the demand of residential apartments is increasing day by day. Noida is emerging with a city of ready to move flats in affordable rates.
Noida offers a wide range of flats that fits almost for every budget. The city reflects an enjoyable living due to lush greenery, shopping complexes, restaurants and proximity to Delhi. Various residential projects are going on with the option of one bedroom to four bedrooms, and price varies as per the location. The city also enjoys a realty growth from Greater Noida where many companies are shaping their headquarters.
Many builders are offering ready to move flats that are close to corporate hubs and shopping malls. Many sectors are offering fully or semi furnished modern housing apartments in reasonable rates. Several societies are proffering high end securities and power backup with modern lifestyle. Most of the projects are surrounded with lavish greenery, lots of open space, magnificent sunlight and ample amount of breeze for healthy lifestyle and clean environment.
Townships or integrated housing are getting more momentum instead of standalone plots in Delhi NCR. People wish to live in well secured gated community. Townships are safe, secure, thoughtful and well-planned. Along with this, township has many other advantages. The advantages of a city without the hustle bustle of city life can be experienced here. The same is known as self-contained world. They make life easier and that’s what a home buyer wants at the end of the day!
The criteria of choosing a home have changed all-over. Earlier a home was seen just a place to live in where security was main concern whereas these days buyers are looking for a complete package that offers convenience, lifestyle and quality. As per common saying, address speaks up your lifestyle; people are more concentrating on lifestyle amenities which are being offered in integrated townships. Along with the amenities, walk-to-work concept has also been initiated by the township makers. Integrated housing offers better lifestyle in a transformed city environment which is being aspired by all urbane customers.
Apart from amenities, these new luxurious projects also aim at providing high-quality affordable housing for middle or upper middle class. Talking about Noida expressway, various housing projects are being developed there which offers state-of-the art facilities and amenities.
A lot of well known real estate companies like Ajnara India Ltd, Gulshan Homz, Prateek Group, Cosmic Group,Saviour and more have been building luxurious residential projects for some time now. Ashok Gupta, MD, Ajnara India Ltd says, “We have our exposures in all the segments of demand. And in recent times the demand in the luxurious segment has increased manifolds. Our project Ajnara Grand Heritage in sector-74 has been well appreciated by all, buyers and others, for its luxurious features. We plan to launch more luxurious projects in future.”
Another company which has been primarily into Luxurious segment, Gulshan Homz, states the same view. Deepak Kapoor, Director, Gulshan Homz says, “The last one decade has witnessed a lot of changes in people’s lifestyle and their perception towards life. With the increase in income people now look out for better lifestyle while purchasing houses.”
Companies like Supertech, Amrapali ,Saviour and many more with multiple luxurious projects in Noida have also been doing really good. It is believed that luxury and lifestyle are the two new buzz words for generating demand in the real estate market in India. With the rise in aspirations and income, people who have been progressive and have sizeable corpus are gradually moving towards luxurious dwellings to upgrade their lifestyle.
A real estate investment trust (REIT) is a fresh investment mechanism being planned by the Securities and Exchange Board of India (SEBI). A REIT manages and owns income-generating developed property and is intended to offer common units to the public as an option for investment. These units represent ownership in the business of managing income-producing properties. REITs will make available away to real estate developers to commercialise developed property, providing an exit path. It will also provide overleveraged companies an opportunity to deleverage. It will escalate the depth of the Indian real estate market and provide additional liquidity.
Also, REITs would enable people to channelise their investments into the sector through a structured mechanism. Bearing in mind the current economic slowdown and scarcity of funds, REITs are projected to infuse a fresh lease of life into an otherwise irregular market.
Irregular Road to REITs
The draft SEBI (Real Estate Investment Trusts) Regulations, 2013, seem well thought out. Nevertheless, much is sought after to make the REIT structure commercially viable. The obvious and much-discussed road blocks are taxation of REITs, foreign investments in REITs and stamping of agreements relating to transfer of property to the REITs. In addition to these tentative blocks, there is a need to fix the following issues to make the REIT regulations workable.
One of the basic grounds of the draft REIT regulations is the need to provide an exit avenue and liquidity. But, the definition of “real estate” seems rather bound. The definition of “real estate” or “property” should be widened to include all commercial and residential property and completed infrastructure assets such as roads and highways that have a regular income flow.
Open Realty to Reality
Presently, the least asset value of a REIT is marked at Rs 1,000 crore. While there is a need for confirming financial soundness of the trust, one cannot argue the fact that such a threshold will eradicate many small players. This can be reconciled by providing for the concept of co-sponsors, much like the mutual fund regulations. This would permit companies with a smaller portfolio to come together and set up a REIT. Further, transparency should be provided on the pricing and repurchase of unit along the lines of mutual fund regulations.
In last few years, Limited Liability Partnership (LLP) has appeared as a preferred vehicle for real estate developments owing to the various benefits due to it. The investment conditions with respect to REITs should be relaxed to permit investment in LLPs that house real estate assets, and the definition of “special purpose vehicle” and “body corporate” can be revised to include LLPs, thereby allowing real estate investments in LLPs that own real estate assets.
The latest development in the Indian economy has empowered interest for area and improved real estate nationwide. Contemplating the rising interest for private, business and retail real estate, the Finance Bill 2012 had proposed insertion of segment 194LAA in the ITA to deduct charge by method for TDS @ 1% on attention for exchange of immovable property (other than agrarian land), if the quality of the property surpasses Rs 50 Lakh in urban areas and Rs 20 lakh in other zones.
The idea behind such proposed change appears to be to lessen the flow of black money in the business sector and guarantee dependable information gathering, separated from accumulation of charge to focus on transactions of steady lands. However, the proposal was dropped conceding to the supplication that it will put additional consistence load on the customer.
Government reintroduced the Real Estate (Regulations & Development) Bill, 2013 which proposes to create the Real Estate Regulatory Authority for regulation and arranged improvement in the real estate segment. The destination of the Authority might be to take all conceivable measures for the development and advancement of a solid, transparent, productive and intense real estate area. Also, the bill incorporates many additives for the consumers and some for the business fraternity.
The Real Realty Bill
- The Bill incorporates to institutionalise the part prompting standardised and systematic development of the industry through presentation of definitions, for example ‘apartment’, ‘common areas’, ‘carpet area’, ‘advertisement’, ‘real estate project’, ‘prospectus’ and so on.
- The Bill proposes to enroll real estate executors with clear obligations and capacities, in this manner accelerating cash trail and controlling cash laundering.
- The Bill likewise accommodates foundation of an Appellate Tribunal to arbitrate debates and hear requests from the choices or requests of the Authority.
- Mandatory enrollment with the Real Estate Regulatory Authority for any task to be spread over 4,000 square meters.
- No development could be gained without entering into a concurrence with the client. Deals chanced through pre-sales/soft launch may be shortened.
- Registration could be augmented just up to two years past the definitive period for advancement allowed by the neighborhood licensing power.
- Mandatory web-vicinity of the engineer on the developer’s site.
- The Bill will mix professionalism and push arranged advancement of the real estate segment through the special part of the Regulatory Authority.
- Real estate developer should be instructed to store no less than 70 per cent of the trusts accepted from finish clients into a committed undertaking record, which could be utilised just for the reasons of the task.
It has been proposed that Neemrana, Shahjahanpur and Bahrod be included as three sub-metropolitan cities in the National Capital Region (NCR). Surprised?
Not all deserve enough to be included in the Delhi-NCR and hence, there would be strong rationale for that. Here, we will discuss what has led to this being proposed. Our analysis is for the perspective of the retail real estate investor, hoping to make decent returns over a tenure, with some odds in his favour.
In the current recessionary scenario where property prices are heading towards the downward spiral across cities, everyone is scouting for the best option to invest in the real estate space. In this scenario, there are two aspects that a real estate investor should keep in mind – ‘the price point of entry’ and ‘location & type of property’.
Gurgaon in the Delhi-NCR space has always been on a real estate investment destination map. However, lately with the rising real estate prices and recessionary environment it may no longer be an ideal investment option available or even qualify for being in the first three choices for real estate investments. Amid such a scenario, a real estate investor has to take an objective and long term view of the real estate investment.
From an investment perspective, it is better to identify satellite towns or cities that are coming up around Delhi-NCR with promising prospects. We have heard about the Gurgaon-Manesar-Bhiwadi-Neemrana-Jaipur belt being developed. These satellite cities/towns can be seen as the Dwarka-Gurgaon Expressway of yesteryears, providing an ideal price point of entry. Here, I would cover Neemrana, the least heard about as an investment destination.
Till a couple of years back, Neemrana was known as the tourist destination only with Neemrana Fort attracting foreign and domestic tourists. However, change in the state government policies with respect to setting up of businesses and attracting foreign companies to set up businesses, turned the tide for Neemrana. This was also because the place was marked by the government for setting up of business and supporting residential units, not to speak about necessary infrastructure support that will come up to support both of them.
Here, we are considering the DMIC (Delhi-Mumbai Industrial Corridor), wherein it has been decided to include Neemrana and Kushkheda, in the first phase, with development of industrial townships here on the lines of Noida, Faridabad and Gurgaon.
The Delhi NCR realty market is still a favourite destination for affordable, mid-, and high-end housing segments. A K TIWARY writes
The Delhi NCR residential market is still a favourite destination for affordable, mid-, and high-end housing segments, even in this period of economic slowdown.
A recent report says that with increasing demand of housing cutting across segments in the Delhi NCR realty market, nearly 9,600 units were launched in the third quarter of this year. This is on a par with the number of units launched in the second quarter, and constitutes 22% of the total launches across Top 8 cities in the country like Bangalore, Ahmedabad, Pune, Chennai, Hyderabad, and Kolkata.
The NCR saw a total absorption of 35,000 units in the first half of 2013, showing an increase of 18% from the same period in 2012. Increase in sales can also be ascribed to the high number of project launches in the affordable category. While sluggish buyer sentiment has discouraged sales in some areas, locations like Dwarka Expressway, Noida Expressway, and Greater Noida continue to lure investors.
The affordable, mid-end and high-end segment contributed almost equally to the total launch activity during the quarter. The NCR market registered the highest contribution, 33% of all the high-end launch activity, among the Top 8 cities of India during the third quarter of the year. The majority of the high-end launches in the NCR were located in Gurgaon while the affordable units were concentrated in Noida. The twin cities of Noida and Greater Noida have together contributed nearly 55% of the total number of units launched while Gurgaon accounted for 44% during the quarter.
Reason for demand in the NCR
Realty experts say that over the past two years, the NCR market saw a fall in launches-by nearly 40%-compared to the peak levels of 2010. Short term and long term moving average of launches confirm a plummeting trend.
However, demand has recently stabilized and improved in the last few quarters, which indicates a healthy residential market scene for the NCR-and, if the supplydemand gap tapers further, the region is likely to face an upward pressure on property prices.
Shishir Baijal, CMD of Knight Frank India, says: “The NCR residential market indicated signs of stability in the first half of 2013. Nearly 49,000 units were launched in this period showing a marginal increase of 11%, compared to the first half of 2012. However, a comparison with the first half of 2011 and 2010 reveals a dip of 33% and 59%, respectively. It is quite evident that developers are keeping new launches in check in order to bridge the supply and demand gap.”
Developers have been cautious and remain focused on selling their existing projects rather than launching newer ones. Also, there are great opportunities in the secondary market for projects under construction because investors want to liquidate and reduce holdings. In fact, discounts are being offered in the range of 15-20% depending on the project size and the location. So, overall, this is a good time for people to buy as developers are willing to negotiate the right price and ready to close transactions. Cushman & Wakefield, global real estate consultants, says in a report that the Top 8 cities have seen an estimated residential unit launch of 1,32,000 units between January and September, 2013, which represents an increase of 5% over the same period in 2012.
The high-end property launches in the first three quarters of 2013, which was recorded at 23,500 units, has seen the highest growth at 142% over the same period last year, while launches
in the luxury-housing category recorded a decline of 10.5% between January and September, 2013, over the same period last year.
Shveta Jain, executive director (residential services) of Cushman & Wakefield, says: “Contrary to b y tradition, there has been a decline in new launch activities in the third quarter of 2013, as economic conditions have not been encouraging for developers. The slowdown in demand is largely owing to the low confidence of the consumer, who is put off by increased and consistently high pricing in key cities. Having said that, the demand from first-time buyers and end users has been consistent, as genuine buyers with adequate capital look at this phase as ideal to enter the property market on account of stable capital values.”
Apart from the Delhi NCR, Ahmedabad, Bangalore, and Chennai have seen a quarter on quarter increase of 41%, 25%, and 28% respectively till the third quarter. Though Hyderabad saw the maximum decline of 56% in launches compared to the second quarter of 2013, it however saw one of the highest rises in y-o-y (year-on-year) appreciations. The number of launches in 2013 more than tripled in Bangalore, to nearly 35,000, till September, 2013. Bangalore, the NCR, and Mumbai, contributed 27%, 23% and 19%, respectively, of the launches across the Top 8 cities in 2013.
Rentals have remained stable across most of cities, except Ahmedabad, which registered 4-10% decline in rentals across segments. Gurgaon in the NCR also registered a 4-12% dip in rental values for high-end spaces. Bangalore saw the maximum appreciation,
4-12%, q-o-q (quarter-onquarter) across a few submarkets in the mid-end segment capital values due to persistent demand from working population.
Kolkata registered 5-7% appreciation in capital values of prime areas, due to growing demand for high-end projects in these locations. Capital values across segments in Chennai, Hyderabad, and Pune remained stable during the quarter due to sluggish sales, subdued demand and rising construction costs.
High-end segment capital values in locations like Lower Parel and Worli in southcentral Mumbai declined by 2%, while in Gurgaon, they fell by 3-5%, which is likely to boost demand and push transaction activity in an oversupply scenario. Ahmedabad registered the maximum price correction of 4-8% across the majority of the markets for both mid-end and high-end segments in the third quarter of this year.
After a slow start in the first half of the year, the launch activity seems to have picked up in Ahmedabad, with 2,100 units launched in the third quarter of 2013. This was an increase of 41% q-o-q and exceeded the total number of launches during the first half of the year. Despite the sluggish market, significant pick up in the launch activity over the last two quarters could majorly be attributed to the fact that some planned projects can no longer be delayed further. Nearly 51% of the launches in this quarter were in the affordable segment and a majority of the launches were concentrated in the peripheral areas of SG Highway and Bopal.
Bangalore saw 13,200 units launched, accounting for the highest share of 30% launches across the Top 8 cities during the third quarter of the year.
It was the only city to cross the 10,000 units mark in launches for the third consecutive quarter in the year.
Despite the higher number of launches, the mid-end segment saw an appreciation of 5-12% in capital values across select sub markets. This was been primarily due to the growing demand of residential units in proximity to IT hubs and the paucity of new launches in certain central areas of the city.
A majority of the launches in the midend segment were concentrated in areas like Sarjapur Road and Bannerghatta Road in the south, Whitefield in east and Yelahanka and Jakkur in the north of Bangalore. The realty market of Chennai has continued to register an upsurge in the number of new launches for residential units in the third quarter of this year with more than 4,100 units launched. Nearly 94% of these launches are in the mid-end segment, followed by 4% in the affordable, and the remainder in the high-end segment. Compared to the last quarter, the high-end segment registered a decline of 41% in the number of new launches in the third quarter of 2013. It is expected that the next quarter will see the completion of 6,000 units, which will infuse new residential supply in the Chennai market.
Hyderabad saw nearly 1,945 units launched this quarter, a decline of nearly 56% compared to the second quarter. With Hyderabad contributing only 4% of the total launches across the Top 8 cities, activity in the residential market continued to be sluggish here. The mid-end segment contributed to more than half of the total launch activity in the quarter with Kukatpally registering the maximum activity in the segment. The affordable segment comprised 33% of the total demand followed by high-end segment at 11%.
Mumbai, the commercial capital of India, has seen nearly 7,200 unit launched in the third quarter of 2013. Though this was a decline of nearly 34% q-o-q, it was an increase of 19% for the first three quarters of the year, and was on a par with the average number of quarterly launches in the city over the past two years.
The decline in launches over the second quarter could mainly be attributed to slow sales in the market and the delay in regulatory approvals, as a result of which the fourth quarter might see a slight increase in launch activity. Panvel in Navi Mumbai contributed 64% of these unit launches in the third quarter with major contribution from a single large project. Central suburban areas like Mulund, Powai, and Wadala contributed 13% of the launches followed by Thane at 10%.
Nearly 3,850 units were launched in Pune this quarter out of which two-third came from the mid-end segment and rest from the high-end segment. Amidst sluggish sales, piling up inventories and soaring construction costs, the launch activity saw a decline of nearly 13% q-o-q, as developers adopted a wait-and-watch approach.
Source:Time of India
It is not advisable for end users to postpone their buying decision in the hope that prices will fall; they must grab the discounts that developers are offering and buy their long-cherished home.
The slowdown in the economy has led to sluggish demand in almost all the sectors including real estate. However, consultants say that this is the right time for end users to buy their longcherished home. As builders are in a tight position, many of them are offering huge discounts, even up to 15%—this is not reflected in their official rate chart, though, but the offer holds for the customers who pay cash down. A builder said that as soon as the demand starts looking up, they will withdraw this discount; thus, once the economy looks up, we can expect the prices to automatically go up. In fact, the emerging trend is also suggesting that developers are not cutting the price, but they are ready to pass on the holding cost to buyers. As the rate of interest at which a builder can raise fund is very high, they find it attractive to give a discount of around 15%, which is their cost of fund, to their customers. At the same time, a customer can borrow a home loan at around 10%. In fact, to attract the borrowers, many banks are offering home loans at less than 10%. Not only this, some of them are even waiving off the processing fees.
Taking all these market dynamics into consideration, a consultant said that if someone wants to buy a house for his personal use, this would be the right time to enter the market. He argued that home loan rate is not likely to fall further from the current level, and also that builders would find it difficult to lower the prices of houses further down. In fact, developers and consultants argue that prices of apartment or plotted development in the NCR are not likely to fall.
They argue that to beat the slowdown in demand, developers cut down on new launches. This will reflect in the availability of apartments in the near future in many submarkets like Noida, Greater Noida, Gurgaon, Ghaziabad, Indirapuram, Crossings Republik, and Sonipat. Knight Frank, a global realty consultancy firm, says in its report that despite falling demand, the capital value appreciation in Gurgaon and Noida could be explained due to a steeper fall in project launches, thereby putting an upward pressure on prices.
The report says: “As per the current trends, the NCR residential market is showing a slowdown in terms of project launches. However, this bodes well with the current market sentiment as absorption has picked up, which will further help in bridging the supply-demand gap. At the same time, liquidity constraints coupled with the increase in construction costs will continue to pose a challenge for developers leading to a further slowdown in project launches. This may put upward pressure on prices, which will certainly attract investors.” The report says that the longterm and short-term moving average of launches confirm a plummeting trend.
A similar analysis of residential sales velocity highlights that the long-term moving average of absorption in the NCR market has recently stabilized after a falling trend.
In fact, demand has significantly improved in the last few quarters leading to a substantial improvement in the shortterm moving average. During January-June 2013, the NCR residential market registered a total absorption of 35,000 unitsshowing an increase of 18% over the first half of 2012. This increase in sales can be ascribed to the high number of project launches in the affordable category.
It is important to note that the Knight Frank report says this upward trend in absorption with limited launches clearly indicates that the NCR market is striving to reach a better equilibrium. In case this trend continues for a couple of quarters, the supply-demand gap will taper further leading to an upward pressure on property prices. Over the past two years, project launches have fallen by nearly 40% compared to the peak levels of 2010, the report said. Despite favourable absorption levels in recent quarters, NCR’s residential market displays a high quarters-to-sell (QTS) ratio as the volume of unsold inventory has been building.
Noida registered a steep dip of 72% in newly-launched projects in the first half of 2013, compared to the same period last year, reflecting the cautious sentiments of developers to not oversupply the market, the report said. The report said absorption in Greater Noida, which includes Greater Noida West (formerly known as Noida Extension), the newly-launched projects rosealmost four times compared to the same period in 2012, suggesting a strong demand for affordable options, which is easy on the buyer’s pocket. Absorption levels dipped in Gurgaon and Noida, largely due to increasing un-affordability of the housing options in these markets. In these conditions, it is not advisable for end users to postpone their buying decisions in the hope that prices would fall. In fact, developers, in order to increase their sales volume, are offering huge discounts on their available projects.
The NCR has seen a slowdown during 2012. Massive delays in project deliveries coupled with the economic slowdown have affected demand, as consumers have become cautious and are delaying home-buying decisions. Taking cue from this trend, developers have begun focusing on project execution and are deferring new launches. Greater Noida and Noida account for more than half of the units under construction in the NCR market. Both these micromarkets are backed by robust infrastructural developments.
Noida is perceived to be a prime end-user market in the NCR due to the presence of good physical and social infrastructure; its proximity to south Delhi and the abundant job opportunities it offers are also an attractive proposition. The main developers in this part of the city are Jaypee, Unitech, Amrapali, Supertech, Gaursons, Ajnara, Paramount, ATS, Antriksh, Mahagun, etc.
Greater Noida, on the other hand, enjoys the presence of large contiguous land parcels that are ideal for group-housing projects. However, compared to Gurgaon and Noida, the residential market in Greater Noida has been somewhat cautious because of the lack of commercial presence to support the residential supply.
Gurgaon is the second largest contributor to the NCR residential market. This micromarket accounts for 24% of the units under construction. New infrastructural developments and the presence of prominent builders like DLF, Tata, Unitech, IREO, M3M, Rahejas, Emaar, etc, have made Gurgaon one of the favoured residential markets in the NCR, with primarily mid- to highsegment projects. The primary developing areas in Gurgaon are Golf Course Extension Road, Southern Peripheral Road, Dwarka Expressway, Manesar, and Jaipur Highway.
Bhiwadi and Dharuhera are the developing residential hubs catering to the affordable-housing demand, which has been created by the continual industrial development in these locations.
Ghaziabad and Faridabad account for nearly 20% of the units under construction in the NCR market. Both these markets are backed by industrial growth. Faridabad’s areas like Old Faridabad and sectors on NH-2, Neharpar, and Surajkund Road have seen ample residential project launches during the last few years. On the other hand, Indirapuram, Crossings Republik, and Raj Nagar Extension are some of preferred locations within Ghaziabad.
Preferred locations in the affordable ranges are Yamuna Expressway, TechZone IV, and Jaypee Sports City—in the price range of Rs 2,500-3,500 per sq ft. Availability of huge land parcels and reasonable prices help developers in launching projects in the affordable and mid-segment range with a ticket size of less than Rs 5 million. The fact that developers have been focusing on affordable and mid-segment housing accords well with an increase in project launches in Ghaziabad, which is another market having similar offerings.
A majority of the projects launched in Ghaziabad are in Raj Nagar Extension, mainly a mid-segment residential area that boasts of good connectivity and infrastructure, with highways under construction and a proposed Metro line. Most of the units launched in Ghaziabad are below the Rs 5 million bracket, with an average unit size of 1,000-1,500 sq ft.
Source: Times of India
Noida Extension a 4,000-acre land chunk, with Ghaziabad, the Hindon River and a few sectors of Greater Noida around its boundaries, is today buzzing with activity as almost 75 real estate developers are ready with a slew of projects offering 1/2/3 BHK housing properties at affordable rates.
With low property rates in comparison with other parts of Delhi, Noida Extension has become a favourite for those who wants own a house in Delhi. As per the Magicbricks.com data, the area has the lowest property prices in Noida, and is fast becoming a residential hub.
The prevailing rates of property fall between Rs 2,700 and Rs 3,500 per sq ft in Noida Extension, whereas property starts from Rs 5,000 per sq ft in Noida and Rs 9,000 per sq ft in Delhi.
The realtors dealing in this area are registering a large number of transactions. “We are booking over 40 units per month for various builders in Noida Extension”, says a consultant from a property brokerage firm.
There are more than 70 projects available for booking in Noida Extension by famous builders like Gaursons Group, Ajnara India Ltd, Amrapali Group, Antariksh Group, Nirala Group, Supertech Developers and AVJ Group among others. Possessions for most of the projects are expected within a period of 2 to 3 years.
2 and 3BHK are the most preferred configurations by buyers as well as developers in Noida Extension. A 2BHK unit in Noida Extension is available in size of 800-850 sq ft, where a 3BHK unit covers 1,300-1,400 sq. ft. area.
“There is a blend of investors as well as end-users in buyers for property in Noida Extension. However, working class of Delhi and NCR constitute the major part of the buyers. We receive a huge clientele from Delhi and NCR due to affordable prices. We see a lot of end-users working in areas like Delhi, Noida and Greater Noida, who commute from here on regular basis”, says Ashok Gupta, managing director, Ajnara India Ltd. Ajnara India. Noida Extension provides very promising connectivity to Greater Noida, Noida as well as Delhi. With proposed metro line coming to Noida Extension by next year, there are brighter prospects for better connectivity and demand in the area.
With the infrastructure and real estate developments at pace in Noida Extension, the capital values of property in the area are also anticipated to rise. “We may see the rates touching Rs 5,000 per sq ft in Noida Extension in coming 2 to 3 years” says a realty analyst.
Arvind Singh, managing director, KRASA Group says, “We have been watching Noida Extension from the very beginning. After the initial hiccups the area has come full circle with huge demand and property prices soaring. The best time to invest in any area is during its initial growth when one can expect very good returns on investment. In fact, the development in Noida has boosted the demand in all the nearby areas. People who cannot afford to purchase a house or looking for 2 BHK in Noida can certainly go to such new areas where they can afford houses or upgrade their houses from a 2bhk in Noida to a 3 BHK in Noida Extension (Greater Noida West)”.
Roopak Jain, vice president, BRYS Group says, “Such newer areas actually fill in the gap which otherwise can’t be satisfied in Noida. Noida actually has a huge housing demand and with prices in Noida sky rocketing and with scarcity of land these newer areas provide cushion to the ever increasing demand”.