NCR realty set to take a giant leap
Rapid urbanisation, demographic advantage and rising income levels contributed to growing investments in the Indian real estate sector over the last few years. According to a Global consultancy firm, the size of the Indian real estate market was estimated to be approximately US$78.5 billion in FY13. It is expected to grow to approximately US$140 billion in FY17.
After the arrival of the new government the enthusiasm in the market has increased. Especially, after the budget has set the ball rolling for real estate sector. With allocation of more funds for affordable housing, easing of FDI norms, implementation of REITs and the special focus on infrastructure development, the government has made it clear that in order to push economic growth, a special focus on infrastructure and real estate development is pivotal.
As land is a prerequisite for any kind of development, Noida and Gurgaon are the logical answers to the burgeoning need for housing in Delhi NCR. In terms of inventory, Noida and Gurgaon have more options than any other city in the NCR.
However, they have very individual returns potential. In the last few years, it appears that investments made into properties located in Gurgaon have reaped better returns than those secured from Noida property. However, Noida is not lagging very far behind. Various recent announcements and the infrastructure uplifts of the city have made Noida’s real estate market increasingly attractive.
What favours investors entering Noida is the lower pricing factor, which now promises better appreciation and returns on investments. With the fast-paced development in infrastructure in Noida and its vicinity, real estate growth has really picked up over the past few years. There have been announcements for many new such projects as well, which has had a positive effect on the real estate market.
Though Noida is known for its affordable housing projects, there are numerous luxury projects underway as well as in the pipeline in Noida and its adjoining areas.
With good infrastructure, metro connectivity and good road network, real estate development in the Noida regions is picking up rapidly. This is important, since infrastructure development is the primary draw for buyers and investors into this area. Upcoming major projects like the Export Promotion Zones and Taj Economic Zone along the Yamuna Expressway are likely to push the economic development of this region, consequently giving a further boost to real estate development.
The proposed extension of the Dwarka-Noida City Center to Pari Chowk will give direct connectivity to Delhi and other NCR areas, and the project is expected to complete by 2021. The Noida Metro Rail Corporation (NMRC) has got the required approvals for the 29 kilometer-long Noida-Greater Noida Metro link from the state government, as well. Simultaneously, the Greater Noida Industrial Development Authority (GNIDA) has plans to set up its own power plant, which will provide uninterrupted power supply to the region. These infrastructure developments will take the real estate of Noida and Greater Noida to the next level.
In fact, the positive response from buyers and investors in Noida has now made this the preferred destination for launching new projects and expediting existing ones. All in all, Noida is beginning to emerge as one of the brightest stars in Delhi NCR real estate.
Going forward, infrastructural developments such as the extension of the Metro route to Ghaziabad and widening of the NH-24 to six lanes is likely to aid in furthering residential developments in Ghaziabad as well. The core demand is likely to emanate from the low and middle-income population for the residential offerings in this corridor.
In the foreseeable future, the real estate market in Delhi NCR is going to see considerable forward momentum.
Dhiraj Jain, Director, Mahagun Developers
The views expressed in this article are author´s own
