Greater Noida (West): The Real Estate Mecca
With a total of 136 real estate projects under construction in Greater Noida (West) , it is fast emerging as a real estate hub of India. Top amongst the key markets of Noida, it accounts for 41% of the total new home supplies and 40% of total new homes sales in Noida. Stretching over an area of 3,600 hectares, Greater Noida West has recorded a supply of total 164,508 units.
A large chunk (44%) of the market consists of five distinguished builders like Supertech, Amrapali, Mahagun, Gaursons and Panchsheel whereas the remaining 56% comprises 87 builders including first timers in Noida real estate. Most of these units were launched in 2010-11 with the highest number of launches being in the first quarter of 2010.
Priced at an average of Rs 3,600 per sq. ft., the locality is one of the most affordable urban real estatemarkets in the region. The proposed metro line and the integrated network of roads including the Noida-Greater Noida Link Road, Ghaziabad Link Road and the proposed Faridabad-Noida-Ghaziabad (FNG) Corridor will provide great connectivity with other NCR towns.
The area suffered bad press due to a land acquisition dispute in 2011, which was resolved only in the third quarter of 2012 delaying construction for nearly a year and a half. The investors who exited post resolution of the dispute enjoyed good returns on their investment. The prices escalated from Rs. 2,167 per sq. ft. to Rs. 3,436 per sq. ft. in less than 2 years, giving 60% return to investors.
Greater Noida (W) has seen prominence of large projects and 75% of the projects in the micro market are >500 units. These large projects provide all the requisite amenities to its customers such as clubhouse, green area, sports facilities, etc. But at the same time, density (units per acre) in Greater Noida (W) projects is as high as 180 apartments per acre compared to 60 per acre seen in Gurgaon and other cities. The density will further deteriorate when builders start utilizing additional FAR provided to them in lieu of the land acquisition dispute resolution. Unless appropriate infrastructure is provided by the Greater Noida Authority, it stands at a risk of becoming an urban slum of the NCR.
The past one year has not been lucrative for the Greater Noida (West) market as launches have come down by 50% and sales volume have declined by 22% in the first quarter of 2014 as compared to that of 2013. This slowdown is partially due to macroeconomic conditions. But it also points towards the increasing over supply in the market.
With total population of Noida and Greater Noida being 7.5 Lakhs in 2011, 1.65 Lakh units will result in oversupply unless economic activity increases the demand in Noida.
Prices in Greater Noida West are not expected to rise significantly in the near future as oversupply and competition from Yamuna Expressway will keep a check on price rise. This makes it an appropriate location for end users looking for affordable housing though investors need to be cautious in choosing the right projects for investment.
For information about builders and projects in Greater Noida, visit PropTiger.com