MY KOLKATA EDUGRAPH
ADVERTISEMENT
regular-article-logo Monday, 22 July 2024

Noida: What's pushing flat rates as city goes luxury from affordable

According to a report by property consultant JLL, 14,822 flats worth Rs 24,944 crore were sold in Noida last year

PTI Noida Published 16.06.24, 06:16 PM
Representational Image

Representational Image File photo

Noida and Greater Noida, once known for affordable and mid-segment properties, have emerged as hotspots for premium real estate over the past five years.

Previously limited to properties in the Rs 40-80 lakh range, new launches now frequently exceed Rs 1 crore, often in the same sectors and on leftover land from earlier projects.

ADVERTISEMENT

According to a report by property consultant JLL, 14,822 flats worth Rs 24,944 crore were sold in Noida last year.

This surge is underscored by a significant increase in the average apartment price, which rose from Rs 1.24 crore in 2022 to Rs 1.68 crore in 2023. Apartments priced at Rs 3.5 crore and above made up 23 per cent of total sales in 2023.

Stakeholders believe the transformation is driven by several factors, chief among them being infrastructure development, completion of stalled projects, and favourable policy changes.

Key infrastructure projects include the development of an international airport, dedicated industrial sectors, data centre land banks, and an extensive network of roads, railways, and metro lines, all of which have significantly improved connectivity and logistics in Noida and Greater Noida.

Developers such as Experion, M3M, Godrej, Ace, County Group, Max are offering ultra-luxurious apartments and high-end studio apartments in Central Noida. Groups like Express, DASNAC, RG, and others have introduced units starting at Rs 10,000 per sq ft, featuring limited towers with three- and four-bedroom configurations.

Price appreciation has been most notable in the 7x (73, 74, 75, 76, 77, 78) and expressway sectors (sectors 108, 142, 143, 150, and 152).

For example, the cost of a three-bedroom apartment in these sectors has increased from around Rs 5,800 per sq ft in 2019 to over Rs 10,000 per sq ft today.

Country Group's Ivy County, initially priced at Rs 6,000 per sq ft in 2019, now commands Rs 15,000 per sq ft with ready to move in units while rates in its recently-launched Ivory County are between Rs 15,000 sq ft and Rs 16,500 per sq ft. Ivy County is located in Sector 75 Noida, while Ivory County is in Sector 115 Noida.

Greater Noida West, also known as Noida Extension, has seen a significant rise in prices as well. A property that was priced between Rs 3,500 and Rs 4,500 per sq ft in 2019-20 now sells for more than Rs 7,000 per sq ft. Whether a property is completed or ready for occupancy, prices in this region have increased steadily.

RG Group Director Himanshu Garg highlighted the changing preferences of buyers.

"Customers are looking for a lifestyle, not just a nice apartment. They now ask about luxurious entrances, opulent clubhouses, landscaping, and even facilities for visiting guests. This shift in demand has encouraged us to enter the premium segment in Noida and Greater Noida West," Garg said.

A critical factor influencing buyer sentiment is the completion of previously stalled projects.

Various legacy issues had delayed these projects, but the availability of SWAMIH funds and efforts by UP RERA have facilitated their completion. Promoters have also turned to joint development agreements (JDA), private funding, and asset monetisation to secure the necessary funds.

The resurgence of these projects has not only rejuvenated the respective sectors but also driven demand and prices upward.

Dinesh Gupta, Secretary of CREDAI Western UP, said, "Large-scale infrastructure developments, such as the construction of Jewar Airport, Film City, have significantly improved public perception of the region. The government's efforts to address stalled projects and maintain law and order have driven promoters to offer beyond established trends." This fiscal year has seen a significant increase in property prices and according to a 99acres report, prices in over 10 Noida areas have risen 23 per cent year-on-year, with the most substantial increases observed in sectors 108 (60 per cent) and 144 (51 per cent).

Jaypee Greens in Greater Noida have seen prices jump 30 per cent year-on-year and 92 per cent since 2020, the report stated.

Another major factor contributing to this growth is the state government's acceptance of the Amitabh Kant Committee's recommendations. Development authorities recalculated pending dues, allowing developers to deposit dues in installments and proceed with unit registrations.

The perception of Noida has been further enhanced by the government's push for business and infrastructure development. Gautam Buddh Nagar is now home to Fortune 500 companies in IT/ITeS, research, and consulting, creating numerous job opportunities and attracting people seeking proximity to their workplaces.

Alakshendra Singh, Head of Corporate Communications at Eros Group, said, "In the past two years, we have seen a notable improvement in demand and prices, particularly for projects on 130-meter roads and near future access points like Jewar Airport and the Yamuna Expressway." Civitech Group CEO Sarthi Goel said post-pandemic, there is a drastic change in the image of properties and projects belong to the Noida and Greater Noida region.

"Promoters are more aware of the changing taste of home buyers and are learning from past experiences. Now they are bringing limited units and towers, utilising latest construction technologies in construction to avoid any compromise with the quality and timeline.

"Of course this will add a premium tag on the upcoming projects and this market is still pocket friendly in comparison of any other regions having similar," Goel added.

Except for the headline, this story has not been edited by The Telegraph Online staff and has been published from a syndicated feed.

RELATED TOPICS

Follow us on:
ADVERTISEMENT