Homes are fast getting expensive in Noida. And airport is not the only reason.

Noida’s real estate market is undergoing a premium transformation, with property prices skyrocketing due to the rebound in the sector. Rates per square foot have nearly doubled in all housing hubs in the city, with some properties experiencing a 100% increase. The 7x and expressway sectors have seen the highest appreciation in rates, and areas like Sector 150 and Greater Noida West are also witnessing significant price hikes. Positive sentiment, infrastructure development, and the upcoming Noida International Airport are driving the surge in demand. The Noida Authority has implemented policy changes to attract serious players and address past issues with land allotment practices.

If you don’t have a minimum budget of Rs 1 crore, you may not be able to purchase a new house in a gated society in Noida.

Delhi’s eastern neighbour, which developed through the Nineties and the Noughties as a budget housing market, is taking a premium turn, going the Gurgaon way as property prices head sharply north.

The appreciation is swift as the real estate sector rebounds like elastic from the Covid-induced super suppression.

Rates per square feet have nearly doubled in all the city’shousing hubs from the 2020 or the 2019 (pre-pandemic) levels, and in some places and properties, breached the 100% mark.

Housing hubs make hay

The 7x and expressway sectors (mainly 108, 142, 143, 150 and 152) have seen the highest appreciation in rates. In Sector 75, a 3 BHK flat at JM Aroma cost around Rs 5,800 per sq ft in 2019. It rose to Rs 7,000 per sq ft in 2021 and Rs 8,000 per sq ft in 2022, and is available for Rs 9,500 per sq ft today. Ivy County in the same sector, which was available for Rs 6,000 per sq ft in 2019, now commands Rs 10,000 per sq ft.

In Sector 150, which has projects like Mahagun Meadows and ATS Pristine, the smallest house on offer is 11,000 square feet. The average rate here is Rs 13,000 per sq ft, up from Rs 6,500-Rs 7,000 in 2021. Greater Noida West, or Noida Extension, the hub of stalled real estate projects not too long ago, isn’t far behind. The average rate here is upwards of Rs 7,000 per square feet, irrespective of whether a project is unfinished or ready to move in. In 2019-20, flats were available here in the range of Rs 4,500-Rs 5,500.

Strong surge this fiscal

The rise has been particularly sharp in this fiscal year. A recent report by 99acres said there was an overall 23% year on year (YoY) price appreciation in 10-plus localities of Noida, with housing societies the most popular choice, followed by independent homes. The YoY appreciation was the highest at Sector 144 (51%) and Sector 108 (60%). In Greater Noida, prices at Jaypee Greens saw a 30% appreciation YoY and 92% since 2020, according to the report.

Real estate consultant Amit Sawhney said, “There is a change in the market as people have overcome the phobia of not investing in Noida. Excellent connectivity with Delhi and well-planned infrastructure have helped dispel the feeling of uncertainty.”

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Sentiment over setback

Real estate watchers say besides the pure economics of demand and supply, a wave of positive sentiment has prevailed over major setbacks in real estate the city has seen. Over the last decade and a half, everything that could have gone wrong went wrong in Noida. From Jaypee Wishtown to Amrapali and Unitech, the city has seen some of India’s largest real estate collapses. Last August, it also witnessed a watershed moment when the Supertech twin towers were blown to the ground on the orders of the Supreme Court, which also made scathing observations on institutional corruption that had cleared the path for the two illegal highrises.

But the market hasn’t been caught in cogitation. It has simply moved on. Prices have been going up because, at present, demand is higher than supply in Noida. The city’s population has been on an upswing in all its housing hubs because many delayed houses got delivered over the last couple of years, allowing families to move in. But new launches have been few, which has led to the inventory of unsold flats falling. Adding to demand is the return of the executive workforce to NCR after most companies suspended work from home this year and called employees back.

Work near home

A major commercial and corporate investment thrust by the state government and the imminent launch of the Noida International Airport have been the chief drivers of sentiment. The state government has allotted large corporate spaces in the city to MNCs as it aggressively seeks investment. The immediate impact of a bigger executive workforce is demand for places to stay in the vicinity, a big factor in better quality of life.

“Property prices have been increasing every six months since the launch of Noida International Airport,” said Akashdeep Singhal, director of SNJ Realty International. “Sentiments are running high in anticipation of commercial operations next year. Investors from cities like Mumbai, Bengaluru and Chennai are putting money into buying flats and other residential properties in Noida, as a result,” he added.

BK Malagi, COO of Experion Developers, feels the way Noida is perceived has changed because of infrastructure development and the government’s corporate push. “For example, Fortune 500 companies in sectors like IT/ITeS, research and consulting have established themselves in Greater Noida West, creating a plethora of job opportunities and drawing in professionals, all seeking the convenience of living near their workplaces. The promise of a better quality of life has proven to be the central driving force. Gated communities, green spaces and bigger houses, luxury add-ons and retail brands increasing their showroom footprints in malls also make Noida more appealing,” he said.

Living it up

Developers say their customers are no longer just looking for a nice flat but the lifestyle that comes with it. “Earlier, homebuyers would ask about the clubhouse and swimming pool. Now, there are inquiries about sauna, jacuzzi, restaurants, even lodging for guests. People are ready to spend for such facilities,” said Suresh Garg, vice-president of Credai (western UP).

Infrastructure within the city, like the Noida Expressway, the elevated road to Greater Noida West and the Aqua Line have all been local game-changers. “From 2020 to 2023, the real estate landscape in Noida has seen an upturn not just because of the economics of the market but the growing allure of Noida. It is a strategic location, is well connected by expressways, and will soon have an airport in Jewar,” said Salil Kumar, director (sales and marketing), CRC Group.

Policy correction

The Noida Authority has, meanwhile, made a policy shift after its land allotment practices were severely criticised by the Comptroller and Auditor General. The earlier policy of allotting land at just 10% upfront payment and the rest in yearly instalments is at the heart of the deadlock between the Noida Authority and developers over dues. Now, any company allotted land has to pay the cost in 90 days. This, say watchers, will bring in only serious players into the market, which is saturating in Noida, but has tremendous growth opportunities in Greater Noida and along the Yamuna Expressway.

Plot prices up too

The price of residential plots in the city has doubled in the last three years. At present, the rates range from Rs 1.8 lakh per square metre to Rs 2.25 lakh per sqm, depending on the area. In premium areas like Sector 15, it goes up to Rs 3.25 lakh per sqm. In Sector 44, the prices range from Rs 2.5 lakh-2.75 lakh per sqm.

In the Yamuna Expressway area, rates have surged since the airport was announced. “A 300 sqm plot that was available for Rs 55 lakh three years ago is now fetching over Rs 2 crore. The airport announcement played a pivotal role in propelling these rates,” said Singhal.

Fortunes of the Yamuna Expressway Industrial Development Authority’s plot schemes have changed. A recent residential scheme in sectors 16, 17 and 20 saw nearly 1 lakh applicants for just 1,184 plots. Till 2021, its plot schemes drew lukewarm response.

Source – TOI