The never ending desire of not only residing but also working in and around the capital city of India, led to the expansion of the boundaries bordering Delhi to form the National Capital Region (NCR). NCR is a special status to areas in Haryana, UP and Rajasthan along with the National Capital Territory of Delhi. This constitution includes the much active realty markets of Gurgaon, Faridabad, Noida, and Greater Noida. Of these realty markets, Noida and Greater Noida have emerged as preferred residential destinations very close to Delhi border. This attracted a number of corporates to set up their workplaces here. A large number of manufacturers too have come up in Noida and Greater Noida, owing to the incentives offered to industry by the state of Uttar Pradesh.
The history of Noida dates back to 1976 when the Government of UP notified 36 villages as New Okhla Industrial Development Area. The 70’s and 80’s led to emergence of Noida as an industrial hub and in 1990, there was declaration of Greater Noida as a separate entity. Since then, to factor the growing residential demand to match up the increasing population, the realty market started to boom and by late 90’s Noida and Greater Noida were full-fledged real estate junctions.
Early 2000’s witnessed the Delhi Noida Direct (DND) Flyway and the paved way for the Noida – Greater Noida (NGN) Expressway in order to enhance connectivity.
A notable deal of 340 acre took place in 2006 when a large developer acquired land for over 1500 crore rupees in Noida and thereafter started the era of developers investing in land in the region.
The year 2007 saw the launch of one the biggest malls of its time in India, the Great India Place Mall and soon after a couple of years, Noida got connected with the Delhi Metro. This changed the way travel functioned so far for Delhi-Noida commuters. A number of commercial offices and corporates came up in Noida hereon as the region was open for employees living not only in Noida and Greater Noida but also in Delhi, Gurgaon and other nearby areas.
The Buddh International Circuit opened in 2011 and hosted the First Grand Pix and the Yamuna Expressway commissioned in the year 2012 and further enhanced connectivity till Agra. The plan for Noida-Greater Noida Metro was approved in 2014 and the real estate markets of Noida and Greater Noida have been performing exceptionally well on various parameters and across sectors including Residential, Commercial, Industrial and Retail.
Speaking of the existing road network in Noida and Greater Noida, the connectivity has been strengthened since the 2000’s owing to the IT/ITeS in the region. The Delhi-Noida-Direct (DND) Flyover is an eight lane highway that grants seamless connectivity to Noida with the capital city.
The DND is a 9.2 km controlled expressway that has been operational since 2001. The second expressway that transformed the landscape of Greater Noida, and has offered smooth transition to Agra is the Yamuna Expressway, a 165 km six lane highway operational since 2012. Noida and Greater Noida connectivity has been further strengthened by the 6 lane 25 km Noida- Greater Noida Expressway. The metro connectivity offered by the Delhi Metro spans spans across 209 km and connects various destinations in the whole of NCR. In Noida, the Blue Line of the Delhi Metro renders commuters a hassle free journey, with the 49 km patch connecting Dwarka to Noida Sector-32 and is operational since July 2010. The Delhi Metro Rail Corporation recorded the average ridership on the Blue Line Metro in January 2015 as 9,15,172 per day.
The upcoming infrastructure includes the Faridabad-Noida-Ghaziabad Expressway (FNG) that will further strengthen the road network in NCR. The FNG Expressway is a 56 km highway that will connect Noida, Ghaziabad and Faridabad. Much of the stretch of the FNG within Noida is already functional. The expressway is under-construction and is expected to be completed by 2020. Of the total length, 16 km that runs through Noida, 8 km has been completed. A 5 km, 6 lane elevated corridor is also planned between Sector-41 and SEZ II which is expected to be completed by early 2020s. This signal free corridor will pre-empt to reduce the traffic that may further crop up on this stretch. The Eastern Peripheral Expressway commonly known as Kundli-Ghaziabad-Palwal (KGP) Expressway, is 135 km in length and will connect Delhi with Greater Noida, Ghaziabad, Faridabad and Sonipat. The Expressway has been granted with a deadline of 2018 and is aimed at soothing the congestion between the Ghaziabad-Faridabad stretch.
Apart from road network, Noida region’s connectivity will be further boosted by the Noida-Greater Noida metro with a 30 km track across 22 metro stations. The development is undertaken under the banner of Noida Metro Rail Corporation and operations are expected to be commissioned by 2017. One of the most important infrastructural development under-way is the Delhi Mumbai Industrial Corridor (DMIC) that aims at developing industrial cities along the 24 nodes in 7 states. DMIC is proposed to be developed into a global manufacturing and trading hub. 2 of these nodes are in Uttar Pradesh and Dadri-Noida-Ghaziabad node is being developed as a manufacturing city in the First Phase.
An upcoming airport at Jewar near Greater Noida is going to be one big development for this region. Both the state and central government are getting serious about initiating work on this project soon.
Noida and Greater Noida have a good social infrastructure and the same has been seeing an upward sloping curve ever since the property markets here have been established. A number of reputed schools like Step by Step, Amity International, Delhi Public School, Apeejay School, Lotus Valley School, Kothari International School, DPS Greater Noida, Ryan International School are functional since 1980s. Schools such as Amity International have capacity of 6000 seats and Delhi Public School have a student capability of 4000 seats. This indicates not only a strong demand but an equivalent supply from educational institutions. Analysing the hospitality sectors indicates existence of a number of renowned hospitals like Fortis, Max Hospital, Jaypee Hospital, Apollo Hospital, Kailash Hospital and Heart Institute, Metro Hospital and Heart Institute, Amrapali Hospital, Indogulf Hospital amongst a number of others.
Jaypee Hospital has a bed capacity of 525, whereas Kailash and Metro hospital have a bed capacity of 325 and 300 respectively. Retail space has gained ground in Noida and Greater Noida.
Malls such as the Great India Place have been serving customers for almost a decade now and interestingly the largest shopping mall, the DLF Mall of India is operational since 2015 in Noida, Sector-18.
This largest mall hosts 18 anchors, 330 brands, 7 PVR’s, 75 Food and Beverage Stores spread across 7 floors! Centre Stage Mall, Gardens Galleria, Spice Mall, Grand Venice Mall, West Galleria Mall are some amongst a number others.
IT giants such as Computer Science Corporation (CSC) has 3 offices in Noida, Samsung and HCL Technologies are too headquartered in Noida. Other major occupiers include Sapient, Accenture, Fiserv, International Business Machine (IBM), EXL, Iyogi, Dell etc. Key IT parks offering commercial spaces to various corporates are DLF IT Park, Logix Cyber Park and Stellar IT Park.
The major SEZ operating out of Noida are Unitech Infospace and 3C Oxygen SEZ. And companies such as HCL, Moser Baer, NIIT, CSC, Wipro have their own built-to-suit campuses, that are developed keeping in mind the special needs of these corporates. Thus, these Grade A offices buildings and SEZ’s continue to drive corporates and hence fetch demand for housing units in and around these areas. Some corporates who have recently leased commercial spaces in Noida are TCS that leased 2 lakh sq ft in Okaya Blue Silicon, Oppo Mobiles leased 1.73 lakh sq ft in ASF Synergy in Sector-63 Noida, Accenture took up 29,000 sq ft in Brookfield Infospace and British Council took up 25000 sq ft in Advant Navis in Sector-142 in Noida. The rental values of office space have witnessed a sharp increase year-on-year in Noida, Greater Noida and its micro-markets. The rental value range in 2016 in Noida varies from 44 to 70 rupees per square feet. As per a report by Knight Frank, the rental values rose by 9% since the year 2015, indicating good office demand.
The demand for housing at Noida and Greater Noida is driven by the corporate and campus setup in the region, the manufacturing plans and the IT SEZ boost backed by the UP Government initiatives and a number of other secondary activities. Further demand is augmented by large education and government sector. The markets of Noida and Greater Noida have emerged as relatively affordable options for many who look for investment in second homes. The ticket size of units launched in Noida in the first half of year 2016 can be demarcated as, almost 45% of launches fall in the category of Rupees 50 lakh to Rupees 75 lakh followed by 15% launches falling in the category of Rupees 75 lakh to Rupees 1 crore, and 20% falling in the category of Rupees 1 crore to 2 crore. Amongst remaining, 10% launches are in the Rupees 25 lakh to 50 lakh bracket and only 5% launches were witnessed to be under Rupees 25 lakh. This clearly show the preference of buyers and investors for the market of Noida. The statistics of Greater Noida however portray that affordable is the key to the market. 60% of launches were in the bracket of Rupees 50 lakh to Rupees 75 lakh, followed by 20% launches in the luxury segment of Rupees 1 crore to 2 crore. 20% of the launches in Greater Noida have been in the Rupees 75 to 1 crore category and 10% each in the under 25 lakh category and Rupees 25 to 50 lakh bracket. The demand for luxury and green living especially a component in Greater Noida projects can also be derived from this analysis. The test of the waters is done by real sales and total units sold in NCR market from 2015 to first half of 2016 indicated that maximum units have been sold in Greater Noida. Greater Noida has clearly emerged out as the winner in the total sales and by figures is almost responsible for 45% of the total sales on average in NCR. The sales in Noida have been 15%, 14% and 10% for H1 2015, H2 2015 and H1 2016 respectively. The improving connectivity to Greater Noida via the Expressway, the relative affordability factor of ticket sizes and the positive sentiments on metro development plans have boosted the sales month on month for the region.
Several instances such as the NGT issues in Noida, stalled construction due to land acquisition issue in Greater Noida West did have an impact on the realty market in Noida and Greater Noida in 2014 and early 2015 but on successful resolution of these issues, the regions have witnessed not only exceptional launches but also matching sales. The end user and investment sentiment has picked up going further with the commission of Metro till Greater Noida, these markets are expected to reach their all time high. This will be the much needed connectivity that Greater Noida has lacked as an alternate to public transportation. With fully functional broad roads, up and running infrastructure, amenities and facilities with every residential project, the regions of Noida and Greater Noida will provide one of the safest bets for coming years in real estate.
No wonder then that India’s foremost real estate developer, Godrej Properties, has selected both Noida and Greater Noida as its new markets in the year 2016.
Click to check plans for Godrej Properties – Golf Links