Which is better for investment Gurgaon or Noida?
Gurgaon vs Noida: Which is better for investment?
The real estate markets of Gurgaon and Noida in the National Capital Region have grown at a rapid pace over the last decade and continues to do so. On one hand, Noida is one of the largest planned city in Asia whereas Gurgaon, on the other hand, though haphazard, has seen immense development with various options such as shopping complexes, IT/ITeS, industries etc. As a result, these cities have attracted not just end-users but largely investors. Property prices have seen a steep rise in both the regions over the last few years.
But, if one asks simply. Gurgaon or Noida: Which is better for investment?
The answer is rather very difficult, considering the fact that both cities have shown remarkable growth in the past and continue to do so with several new planned projects. From investment point of view, along with location, many points have to be kept in consideration such as infrastructure, connectivity, quality of living, demand & supply etc. Hence, to ultimately decide which city is better among the two, we will explore some key differences. While there are many similarities, there are also many differences in terms of environment, facilities and most importantly real estate developments.
SWOT Analysis of Noida:
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Strength |
Weakness |
Opportunity |
Threat |
| Noida, located close to Delhi, incorporates both industry (hub of automobile ancillary industry and IT/ITeS) and residential development with advanced infrastructural facilities and landscaped green belts. | Noida witnessed maximum number of residential unit launches in the country in the last three years and prices have become sky-high. There is an oversupply of office space and therefore the rents in this submarket are unable to appreciate in recent times. | Noida City Center is being developed on a 99 hectare plot, with facilities like big offices, cultural centres, multiplexes, five star hotels, residential blocks and much more. Noida also has an 18-hole Golf Course of International Standards. | Various land acquisition related issues and disputes have hit many projects and challenging the reputation of many developers. |
| Noida-Greater Noida Expressway (about 40 sectors are planned). | Oversupply situation in commercial real estate market is capping the appreciation of rents, many developers will slow down or resist construction activity to rationalise the supply. |
Land availability is now reaching saturation level for new developments and big projects. New developments are now possible towards Greater Noida only. Most projects are expected to get launched along the Noida–Greater Noida Expressway and beyond, on the Yamuna Expressway. |
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| DND Flyover, an 8-lane expressway connecting Noida and Delhi. Yamuna Expressway connects Noida to Agra via Mathura. | |||
| An extension from Noida City Centre station to sector 62, Noida is proposed in the phase-III of Metro. | |||
| Rich in social infrastructure and commercial market – many premium shopping malls – The Great India Place mall, Spice World Mall, etc hospitals (Max, Apollo, Fortis etc) and educational institutions. | |||
| Key IT Parks – Logix Cyber Park, DLF IT Park, Stellar IT Park etc. | |||
| Key SEZ developments are Unitech Infospace SEZ and 3C Oxygen SEZ |
SWOT Analysis of Gurgaon:
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Strength |
Weakness |
Opportunity |
Threat |
| Gurgaon is also located close to Delhi (about 32 kms) from South-West Delhi. | Gurgaon has seen haphazard development. It was a private company that gave shape to the city. | Rapid metro is likely to improve connectivity and transport system in Gurgaon. | Burgeoning population is causing immense pressure on the already bad infrastructure. High property prices is eventually leading to the city being only a luxury market. |
| Gurgaon and Greater Gurgaon are becoming one of the preferred luxury destinations in India. | Gurgaon has one of the worst physical and social infrastructure in the country. |
Greater Gurgaon has immense potential to develop and avoid the mistakes that Gurgaon made. Physical and social infrastructure has to keep pace with population growth. |
Land availability is now reaching saturation level for new developments and big projects in the area and new developments are possible towards Greater Gurgaon only. Most of the projects are expected to get launched along the Sohna Road and Golf Course Extension. |
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There are 11 metro stations in Gurgaon, of which five are managed by Delhi metro which include HUDA City Centre, IFFCO Chowk, MG Road, Sikanderpur and Guru Dronacharya. Remaining six stations are operated by Rapid Metro: Sikanderpur, Phase 2, Vodafone Belvedere Towers, IndusInd Bank Cyber City, Micormax Moulsari Avenue and Airtel Phase 3. |
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| Gurgaon has more than 500 Fortune listed companies. | |||
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Recent Haryana government has taken efficient decision for the upliftment of the city. |
KEY DIFFERENCES:
- Noida has a better planned infrastructure in comparison to that of Gurgaon where liveability is still a major concern in many areas.
- Minimum road width in Noida’s industrial sectors is 80 feet as against just 45 feet in Gurgaon.
- Noida has better water and electricity supply system with most of its electricity supply being privatized. On the contrary, condition of power supply in Gurgaon is dependent upon Haryana State Electricity Board which in itself is not so productive/efficient.
- Physical infrastructure in Noida and Greater Noida is followed by real estate development including commercial and residential. While in Gurgaon, it is just the reverse. Infrastructure is developed only after the real estate potential of an area has been almost fully exploited.
- No polluting industry is permitted in Noida.
- Wide and better roads, public transport connectivity in each part of Noida, low cost of living, better connectivity through expressways, large green landscape areas, environmental friendly policies, and other related lifestyle facilities in Noida gives it an edge over Gurgaon.
- Education: For children schools, Gurgaon has more and better established international schools than Noida.
- UP as a state is too large and Noida is among the other many cities including Ghaziabad, Lucknow, Kanpur, among others. Whereas Haryana is smaller and Gurgaon is probably the only cash cow. Hence, the latter has always had and will continue to have better Government focus than Noida.
CONCLUSION:
To sum it up, from investment point of view, both cities have their own pros and cons. Gurgaon has almost four times the presence of commercial and corporate offices than that in Noida. The other key advantage of the millennium city is its close proximity to South Delhi and the IGI airport, which has been the key driver for growth in Gurgaon. But prices here are now exorbitantly high and a person with a small budget (within 50-60 lakhs) has to move to the peripheries to invest.
On the other hand, the region around Noida-Greater Noida expressway will be a good investment option with relatively low ticket size. Gurgaon remains largely driven by investors while Noida is more end-users driven and more affordable for mid-segment buyers. Though it has been observed that Gurgaon has seen higher appreciation in property values than that of Noida, what favours investors entering the latter are the entry-level price points which have more scope for appreciation and return on investments. Gurgaon continues to be favoured by buyers in the premium segment.
