DELHI: Investment inreal estate in the long term is always rewarding. Among all the asset classes, the long-term real returns from real estate are the highest. But for this, one must find out the right areas to invest. In the Delhi NCR, there are a number of pockets, where the return can be very good.
A DTZ report says that due to the scarcity of developable land in the main city of Delhi, the real estate activity shifted to the peripheral locations of Gurgaon and Noida.
The report said that the primary difference between Gurgaon and Noida lies in the level of planned development, and the rate of growth of the region. While Gurgaon saw faster development due to the growth of the service industry—primarily IT/ITeS—owing to its proximity to the airport, the development was more haphazard, with poor physical infrastructure. Noida, on the other hand, has far more planned urban infrastructure, with clear demarcations of different residential and commercial sectors.
The planned extensions of the main Noida region, the stretches along the Noida-Greater Noida Expressway, and Greater Noida, have registeredheightened activity in the residential segment in the past two-four years. In Noida-Greater Noida, the sub-micromarkets of Noida-Greater Noida Expressway, Yamuna Expressway, and Greater Noida West (popularly known as Noida Extension), and stretches along NH-24 are the emerging corridors of real estate development in the eastern periphery of Delhi.
Noida-Greater Noida Expressway
Sectors 124 to 144 comprise Noida-Greater Noida Expressway. The micromarket has a good mix of commercial, residential and forthcoming projects in retail, hospitality, educational, and healthcare.
Noida-Greater Noida Expressway has emerged as the next ‘go-to’ location for office space due to the shorter travel time, for commuters coming from New Delhi. This is attributed to better approach and negligible traffic congestion along with better quality of construction, the DTZ report said.
Infrastructural development and good connectivity have played a vital role in growing demand for residential apartments along Noida-Greater Noida Expressway. In last five years, residential units along the expressway have registered more than 50% rise in average residential capital value—going from Rs 3,500 per sq ft in 2009 to Rs 5,200 in 2013. The report says end users should invest in this area primarily due to the well-planned and sustainable infrastructural development, along with the availability of affordable and mid-end residential options, compared to its counterpart in Gurgaon. Investors can get better options—in terms of quality and area—for the same amount they invest in Gurgaon.
Also, with the new master plan aimed at developing high-quality infrastructure in the region, the appreciation is definitely going to be worth the investment. Noida-Greater Noida Expressway certainly has a lot of potential, which it has already started leveraging, given the fact that established micromarkets like Gurgaon and Noida are expanding towards the periphery now.
Yamuna Expressway is expected to be the next hotspot for large-scale developments like integrated townships, logistics, and warehousing hubs, the report said.
The proposed Export Promotion Zones (EPZs), including Taj Economic Zone along Yamuna Expressway, will promote economic development of thewhole area. The locality is in high demand from middle-income buyers, especially investors with limited budgets.
With the Formula One race track becoming a phenomenal success, and new facilities like the Jaypee Sports City project, Night Safari, etc, planned for the area, the expressway will see the next wave of development, which will expand the city boundaries.
Residential prices here are among the lowest, compared to other parts of the NCR. Hence, investors have advantage as there is a larger scope for appreciation. For end-users, low price points of projects by major developers present an equally viable opportunity. In last five years, Yamuna Expressway has registered more than 100% increase in average residential capital value-from Rs 2,200 per sq ft in 2009 to Rs 4,800 per sq ft in 2013.
Greater Noida West
Greater Noida West has always been the hub of affordable housing with initial project launches back in 2009-10 quoting at Rs 1,800-2,000 per sq feet. At this cost, the dream of owning a home seemed a reality for most of the potential homebuyers, and a lucrative investment opportunity for investors.
However, land acquisition issue—litigation over the compensation to farmers—and the Allahabad high court’s order in October 2011 to get the Greater Noida Master Plan 2021 approved before commencing further construction, were major setbacks to the property market here, the DTZ report said.
Developers as well as buyers and investors heaved a sigh of relief as the impasse over the area ended with the approval of Greater Noida Master Plan 2021 by the NCR Planning Board in August 2012, clearing the way for resumption of construction of hundreds of housing projects halted in the area.
Greater Noida West is a newly developing residential hub with much potential.
In order for it to emerge as a self-sustained ecosystem, development at all levels is essential. Hence, developers have also started launching commercial projects to tap the extensive residential catchment.
Some of the key commercial projects are Amrapali Techno Park, Premia Corporate City, Earth Commercial Park and Imperia. These townships are also coming up with a number of 5-star hotels, malls, etc.
In a nutshell, the report said Greater Noida West is back in the game with the bustle of brick and mortar resumed.
However, potential buyers must carefully evaluate the projects before they close a deal. They should carry out a thorough due diligence and ensure that the project is clear of all legal encumbrances. The area will certainly see increased pace of real estate activity in the near future and will fetch good returns for investors with an investment horizon of three-four years.