If one mentions the city of Noida in a conversation, a listener is likely to immediately think of the large malls housing the best brands, the expressways, golf courses and the reputed multinational companies which have set up shop here. If the topic of discussion, however, changes to the real estate market in Noida, the response is likely to be markedly different.
Recent news reports regarding the realty sector in Noida, particularly over the last couple of years, have not been the most encouraging to prospective home buyers. In fact, there is significant cause for concern among them when it comes to looking for a good house for themselves, a primary need for any person. Issues ranging from developers running away, massive delays, legal and social issues have all contributed to this perception. A combination of factors at multiple levels has led to this sorry state of affairs.
At the same time, the attractiveness of Noida has not just endured these trying times, but continues to grow further. A leading national level developer, Godrej Properties, has recently entered the Noida realty market, promising to bring its brand value and project execution expertise to residents of this fast developing city. In this article, we assess the state of the Noida market and try to see how Godrej’s track record, particularly in the NCR region, offers signs of hope.
The Promise of Noida
Noida truly has a lot going in its favour. Its biggest positive is its excellent location, across the Yamuna River from the national capital Delhi. Noida and its twin city of Greater Noida are part of the National Capital Region (NCR) and receive plenty of investment from both governmental and private agencies, particularly on the infrastructural and amenities fronts.
Noida is extremely well-connected to Delhi and from there, to the rest of the country and the world. Greater Noida is the starting point of the Yamuna (Taj) Expressway, linking it to Agra. The twin cities are also connected by the Noida-Greater Noida expressway. Add to this, the Delhi Metro links the Noida City Centre to all areas of Delhi, offering a reliable commute to residents.
When it comes to amenities, Noida is second to none. Some of India’s biggest malls are located here. The city boasts of top class medical and educational institutions and with the cities of Delhi, Ghaziabad and Gurgaon next door, options are aplenty. The proposed Jewar Airport in Greater Noida is likely to make this area a major air travel hub and save residents the hassle of commuting to the Indira Gandhi Airport in Delhi.
Noida is home to a number of major multinational companies such as Adobe, IBM, Fujitsu, Honda as well as home grown biggies such as TCS and HCL, among others. The city has large IT parks and auto ancillary units.
Another big positive is that land prices and hence, property prices in Noida are lower than those in Delhi or Gurgaon. This attracts plenty of spillover demand from these cities as well as those from elsewhere. For real estate investors, Noida offers plenty of promise with newer infrastructure projects offering the possibility of good returns.
The Concerns of Noida’s Real Estate Buyers
Noida is of extremely recent origin, having been incorporated only in 1976, and has seen most of its growth since the turn of the millennium, which has been so rapid as to leave behind other cities in Uttar Pradesh. This growth also saw a boom in the real estate market here. However, this is where the problems began.
The Noida realty sector has been dominated by local players. Aided by generous land lease policies of the Noida authority and vast tracts of land being provided by the state Government at throwaway prices, many developers emerged overnight, some looking to make a quick buck. As a result, construction quality suffered and residents, who had invested early, bore the brunt. Buyers also saw a mismatch between the large apartments promised and the smaller ones actually delivered.
Some developers launched too many projects in a hurry and ran into severe financial issues as a result, which led to backlogs and massive delays. Protests by farmers over land acquisition for housing complexes delayed matters further. An order by the National Green Tribunal (NGT) in 2013 (later rescinded), stopping grant of permission to any projects within a 10 km radius of the Okhla Wildlife Sanctuary, further added to the delays and pushed up the cost of construction and purchase. Developers also faced issues clearing their land dues to local authorities and hence, could not procure the mandatory occupancy certificate.
The entry of Godrej Properties into Noida
As mentioned earlier, the Noida real estate market lacks institutional players with a pan-India presence. This could be set to change with Godrej Properties announcing its plans for this market. A subsidiary of the reputed Godrej Group, Godrej Properties has made its name with many landmark residential as well as commercial projects in cities such as Mumbai, Chennai, Bangalore, Gurgaon, Hyderabad and Pune.
Godrej Properties has built a reputation of delivering projects on time and with good quality. Godrej Properties has residential offerings ranging from 1 BHK to 4 BHK apartments, villas and row houses, which cover a large segment of home buyers and suit their budget. Their projects are also known to be environmentally friendly and come with plenty of green cover.
Godrej’s forays into Gurgaon bear this out. Godrej has six current projects in this city. Godrej Frontier comprises of 3 and 4 BHK apartments and penthouses, targeting the premium segment. Godrej Summit has 2, 3 and 4 BHK apartments with large green spaces, appealing to the premium and mid-level segments. Godrej Icon is slightly grander with apartments ranging from 2.5 BHK to 4.5 BHK, with a sky lounge and garden being the standout feature.
Godrej Aria targets the mid-level segment, with a combination of 2, 2.5, 3 and 3.5 BHK homes, as does the award-winning Godrej Oasis project. Godrej 101 too offers top quality apartments with 2, 2.5 and 3.5 BHK configurations.
Noida retains its promise as a land of multiple opportunities and is likely to continue to attract prospective residents. With the entry of Godrej Properties in this market, such residents have a reputed name, which carries a reputation for quality and trust, to look to, which is sorely needed here. While Godrej’s detailed plans are as yet under wraps, its past record and offerings give customers reason for hope and excitement.
- Noida is promising, with excellent amenities, connectivity to Delhi, efficient expressways, proposed Jewar airport and presence of multinational companies.
- Noida is dominated by local players who lower the quality of construction, and deliver apartments smaller in size than expected.
- Developers also faced problems due to launching their projects too early thus causing backlogs and delays, protests by farmers over land acquisition, and not being able to secure right documents.
- Godrej Properties has built its reputation with many notable residential as well as commercial projects in cities such as Mumbai, Chennai, Bangalore, Gurgaon, Hyderabad and Pune.
- Godrej brings in brand value and project execution expertise to Noida where there are issues of developers running away, delays and legal and social issues.