Homebuyers have many options to choose from in 2016. There is a huge inventory of value-for-money-units in attractive locations such as New Gurgaon, Ghaziabad, Greater Noida (West), Faridabad and sectors along the Noida-Greater Noida Expressway.
Ghaziabad, like the NCT of Delhi, is land locked, which leaves limited scope for expansion. As most of the residential developments are coming up along National Highway(NH)-24, this area is in dire need of good connectivity. That’s why widening of NH-24 assumes such importance. There is not much likelihood of incremental employment or residential demand in Ghaziabad in the next few years. Ready-to-move-in units in Vaishali, Indirapuram and Kaushambi may continue to see traction this year.
Despite good connectivity with Delhi and the Gurgaon residential market, Faridabad is developing slowly because of its industrial tag because of the perception that jobs in the industrial and manufacturing sectors are unable to sustain residential development due to limited affordability. Also, as price appreciation due to infrastructure developments, such as the recently-operational Metro, has already been factored in, price growth in Faridabad is likely to be muted. Till the time the city generates an inherent service base to create and sustain demand, it won’t be a very attractive realty destination.
Greater Noida West
Noida Extension (now Greater Noida West) has emerged as an affordable residential destination in NCR. However, factors such as litigations, project delays and lack of connectivity have hampered growth in this area. Today, because of problems like the land acquisition row, project deliveries have been delayed due to intermittent, stalled construction. This, in turn, has also impacted the completion of social and physical infrastructure in that area. Since appreciation due to the initial low base in Greater Noida West has already been taken into account, prices in the corridor are expected to not change much till project deliveries begin and visible infrastructure is in place.
The infrastructure push to Gurgaon’s development will be the litigation-free 18-km Dwarka Expressway, which will provide a much-needed alternative connectivity between Delhi and Gurgaon. The under-construction 16-lane, signal-free Gurgaon Expressway and Phase 2 of the Rapid MetroRail Gurgaon on Golf Course Road are other important infrastructure initiatives that will impact the real estate scenario in Gurgaon’s corridors. Certain residential corridors within Gurgaon will benefit from the incremental office supply and infrastructure development. New Gurgaon is positioned to emerge as a relatively affordable residential catchment within Gurgaon.
Real estate projects launched along the Noida-Greater Noida Expressway will only pick up steam once this urban centre has developed alternative modes of connectivity with Greater Noida other than the existing Noida-Greater Noida Expressway. The Noida-Greater Noida Metro link is thus likely to attract companies looking to set up base in this belt, since it will provide an alternative commute option for the workforce. However, nothing can be estimated until some groundwork is done.
Prices remain in the range of Rs 3,900 to Rs 5,900 per sq ft across Noida and the Noida-Greater Noida Expressway. However, urban centres in the proximity, such as Greater Noida and Ghaziabad, which have low prices, will keep the pressure on Noida’s price appreciation and could limit the upside potential of prices. Certain pockets in Ghaziabad and Greater Noida are offering discounted options to homebuyers working in Noida within a commutable distance of 20-30 minutes. Incremental office supply in Noida in the coming years has not been seen to benefit any particular residential corridor or area, as it is scattered across various sectors. Thus, appreciation in Noida’s residential market due to the employment pull factor will be distributed unevenly.
Source: Residential Investment Advisory report 2016 by Knight Frank India