The Evolution of Real Estate in Noida: From Mid-Segment to Ultra-Luxury

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    Noida, India – Over the past five years, Noida and Greater Noida have shifted from being known for affordable and mid-segment properties to becoming prime locations for premium real estate. This change has been driven by significant infrastructure development, the completion of stalled projects, and favorable policy changes.

    Property Prices Surge

    According to a report by property consultant JLL, 14,822 flats worth ₹24,944 crore were sold in Noida last year. The average apartment price rose from ₹1.24 crore in 2022 to ₹1.68 crore in 2023. Apartments priced at ₹3.5 crore and above accounted for 23% of total sales in 2023.

    Infrastructure Development

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

    Completion of Stalled Projects

    The availability of SWAMIH funds and efforts by UP RERA have facilitated the completion of various delayed projects. This resurgence has rejuvenated the respective sectors, driving demand and prices upward.

    Policy Changes

    The state government’s acceptance of the Amitabh Kant Committee’s recommendations has allowed developers to deposit pending dues in installments and proceed with unit registrations, further boosting the market.

    Premium Developments and Rising Demand

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

    Notable Price Appreciation

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

    • The cost of a three-bedroom apartment in these sectors has increased from around ₹5,800 per sq ft in 2019 to over ₹10,000 per sq ft today.
    • Country Group’s Ivy County, initially priced at ₹6,000 per sq ft in 2019, now commands ₹15,000 per sq ft for ready-to-move-in units. Rates in its recently launched Ivory County range between ₹15,000 and ₹16,500 per sq ft.

    Rise of Noida Extension

    Greater Noida West, also known as Noida Extension, has seen a significant rise in prices as well. A property that was priced between ₹3,500 and ₹4,500 per sq ft in 2019-20 now sells for more than ₹7,000 per sq ft. This steady increase applies to both completed and ready-for-occupancy properties.

    Changing Preferences of Homebuyers

    Buyers are no longer just looking for a nice apartment; they are seeking a lifestyle. Luxurious entrances, opulent clubhouses, landscaping, and facilities for visiting guests have become essential features. This shift in demand has encouraged developers to enter the premium segment in Noida and Greater Noida West.

    Developer Insights

    RG Group Director Himanshu Garg said, “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.”

    Civitech Group CEO Sarthi Goel observed, “Post-pandemic, there is a drastic change in the image of properties and projects belonging to the Noida and Greater Noida region. Promoters are more aware of the changing taste of home buyers and are learning from past experiences.”

    Large-Scale Infrastructure Developments

    Large-scale infrastructure developments, such as the construction of Jewar Airport and 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.

    Influential Developments

    • Jewar Airport is expected to be one of the largest airports in India, boosting connectivity and economic growth in the region.
    • The development of a Film City in Greater Noida is anticipated to attract significant investment and job opportunities, enhancing the area’s appeal.

    Growth in Property Prices

    According to a 99acres report, prices in over 10 Noida areas have risen 23% year-on-year, with the most substantial increases observed in sectors 108 (60%) and 144 (51%). Jaypee Greens in Greater Noida have seen prices jump 30% year-on-year and 92% since 2020.

    Future Prospects

    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.

    Expert Opinions

    Conclusion

    Noida and Greater Noida’s transformation from mid-segment hubs to luxurious living destinations is a testament to the region’s dynamic growth and development. With ongoing infrastructure projects, favorable policy changes, and a shift in buyer preferences towards a more luxurious lifestyle, these regions are poised for continued growth and prosperity. The future of Noida and Greater Noida’s real estate market looks promising, with ample opportunities for investors and homebuyers alike.

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