“Gurgaon scores over Noida as a better property market amongst the two cousins in NCR region” If you believe this statement you might just be ignorant of the many ways Noida’s infrastructure is growing at a break neck speed. Just a few years after the Delhi Metro landed at Gurgaon there were plans to extend the line to National Highway 8. We are in 2016 and there is still no clue about Metro’s extension to other parts within the Millenial City of Gurgaon (read more about Gurgaon real estate). Make a trip to Noida and you will be welcomed by extensive infrastructure development taking place in the city. The Metro is not only expanding within the city of Noida but will very soon be a reality in its twin city of Greater Noida. While I don’t have this metric handy, but it wouldn’t be surprising that Noida has much wider road network per capita than Gurgaon. In fact Gurgaon roads have more potholes than concrete on them!!
Let us go back in time when these cities started to matter on economic map of India. In fact for those who know this region will appreciate the industrial town of Faridabad (sandwiched between Gurgaon and Noida) was far more established and inhabited than either of the two in 80’s. Gurgaon a sleepy village town suddenly woke up to growth and development somewhere in the decade of 90s. Corporates shifted to Gurgaon from Delhi and elsewhere as they found it convenient to be close to the international airport at Delhi. Improvement in National Highway 8 connectivity to Delhi helped the city of Gurgaon get connected to Delhi seamlessly. Also smart and modern office complexes attracted firms such as Genpact, Covergys, Ericcson very early on. On the other hand Noida was a natural extension to Delhi’s Connaught Place, Nehru Place and Okhla. An operational DND Tollway was a boon to commuters to the city and later the addition of Delhi Metro further augmented the city’s appeal. Moreover the officers enclave, IAS/ IFS housing complexes adjoining Noida were a good addition to this city of Uttar Pradesh.
While it is tough to argue whether Gurgaon scores over Noida is social factors including crime against women or thefts, the general perception favours the former. This is one big reason that Gurgaon’s capital values or demand for property outpaces that of Noida. It is not about the volume of take off of residences but the values of it. While one can also attribute proximity to South Delhi, International Airport etc to Gurgaon’s higher values, it is not just me but also some in my know how who prefer to stay at Gurgaon than in Noida for they believe former is a safer city. While Noida property prices lag behind Gurgaon for these reasons these also make Noida far more affordable.
Distance From Delhi and Economic Factors
It is said that location is central attribute to pricing of property. But how does one define a good location is also worth consideration. I might prefer to stay away from the hustle bustle of offices while someone will attach more value to proximity to offices. Just keeping this thought with us we can easily make out that Gurgaon’s employers – Maruti, Hero Honda, consulting firms, banks, KPOs etc are much bigger and better paymasters to leading firms of Noida – Samsung, Honda, HCL, TCS amongst others. Moreover Gurgaon is close to International Airport of the region than Noida. The office take up at Gurgaon in the years 2015-16 has been very robust, with likes of Google expanding in the city. This is seriously one differentiation that puts Gurgaon ahead of Noida.
However, both cities seamlessly integrate into different part of Delhi.
Pricing and Affordability
Talk about affordability. 8-10 kilometers from Cybercity, prime office market of Gurgaon properties will cost anywhere upwards of Rs. 1.40 cr. And these are only few and others are priced even higher. Compare it to Noida, 8-10 kilometers of Sector 18 in Noida properties can be availed upwards of Rs. 50 lacs or so. Noida is much better connected through roads and now the metro. An infrastructure deficit, that Gurgaon faces has led to demand for properties close to work centers. Secondly FSI available at Noida is little over twice of that available for development in Gurgaon. This resulted in far more homes in Noida than Gurgaon in areas equidistant from the central business districts. Noida started to face over supply situation few years back, may be an year or two before Gurgaon. Today both markets are witnessing slowdown in property sales but looks like Gurgaon fell behind Noida in terms of price correction (Noida witnessed price correction over 2-3 years period, while fall in prices in Gurgaon came through in the past 1 year alone).
Amongst the two, Gurgaon seems to be place of choice for those who are rich and famous in the Northern part of India. These include politicians, retired bureaucrats, financial market honchos, PE fund managers, entrepreneurs and others. Gurgaon’s Golf Course road and Golf Course Extension Road are replete with very up market condominiums including Magnolias, Aralias, The Camellias which are owned by whos who of the country. That said Noida isn’t far behind, Sectors 5, 15, 93 in Noida also are home to classy residences. While projects in Sector 44 Noida are again targeted at upmarket crowd of NCR some of these projects have witnessed slow construction.
Connaught Place was the erstwhile prime business center of the NCR, today businesses have moved to Delhi and Noida. Still if Connaught Place was to be at the center of the region, 30 kilometer away from it are these two upcoming cities. It is tough to say whether Gurgaon is better than Noida conclusively. To anyone Noida will feel like a more planned city amongst the two but Gurgaon is more prosperous. I know of several people who take up 3 hours of drive every day from Noida to Gurgaon or vice versa, as they continue to maintain their homes in their city of choice while working in other.
One thing is for sure, in the states of Haryana and Uttar Pradesh, only city matters economically (at least now) – Gurgaon for former and Noida for latter.