Now that the NCR Planning Board (NCRPB) has finally given the nod to developments in Noida Extension, this area has sealed its position as a prime location for affordable houses in Delhi NCR as long as your annual income is anything between Rs 5 lakh and Rs 32 lakh.
Earlier buying a house in Noida Extension was a nightmare. While the farmers were at loggerheads with the builders over compensation issue, the fate of lakhs of buyers was hanging in balance until the court order on Noida Extension was out.
However with the Master Plan for Noida in place and the Yamuna Expressway thrown open to public, investors and real estate players are set to reap benefits. In fact a Cushman and Wakefield report in the quarter ended June saw the highest number of new units launched in the NCR in Noida.
Real estate developers already expect home prices to rise by at least 25 percent in Noida Extension as they are now getting ready to again start construction which was stalled for over a year, which is perhaps why KnightFrank too in its latest report on where to buy property said that Noida Extension and Dwarka Expressway in Delhi-NCR will see an appreciation of 111 percent and 108 percent respectively over a five year period.
According to the latest report by PropEquity, a data analytics and realty research firm, Noida offers the best trade-off opportunities for buyers against Gurgaon where buyers will have to trade-off between a better location and a larger sized unit amid limited supply.
Says Samir Jasuja, Founder & CEO of Prop Equity, " Noida offers more trade-off opportunities for buyers. In Noida, 3 regions namely, upcoming region (Sectors 74-121), Noida Expressway Stretch II and Sectors along Dadri Road becomes affordable if buyers are ready to settle for a unit size (2 BHK).
Spread over nearly 3,635 hectares, Noida Extension is around 4-5 km from Sector 121, Noida - that is, the road from Sector 121 will cross Hindon river and reach Sectors 1, 2, 3, 4, 16B, 16C, 10, 12, Techzone, Knowledge Park 5, etc, in Greater Noida.
But if a buyer is looking for a bigger house with a budget of around Rs 30 lakh, Faridabad is their best bet for end-use consumption and investment. And this availability of cheaper options compared to Noida and Gurgaon's real estate market is the reason for the realty boom in Ghaziabad.
The land crunch in Delhi is one of the primary factors for rocketing prices in the NCR, riding on the back of an insatiable demand. Ghaziabad and Faridabad are witnessing a growth pattern similar to the one witnessed in Gurgaon and Noida in the recent past.
Located 25km from Delhi, Faridabad andGhaziabad are now emerging as the preferred destination for home buyers as there are huge prospects of economic boom in the air. Infrastructure projects aiding this realty boom include the Taj Expressway, which will be near Sector 80, and a highway starting from Kalindi Kunj and running parallel to the Mathura Road, will bypass the city.
Says, Gaurav Pandey, Senior Vice President & Head - Research and Consulting, "Micro markets of NH-24 Bypass, Crossing Republik, RajNagar Ext (Ghaziabad) and Greater Faridabad (Faridabad) region are comparatively cheaper; and an average buyer can afford a 4 BHK there. However, these markets have their fair share of concerns e.g. Greater Faridabad region has internal infrastructure problems, Crossing Republik has a proposed dumping ground."
However, the Neharpar Area in Greater Faridabad offers the most cost-effective option as compared to Noida, Gurgaon and other parts of Faridabad. This is because of the KMP (Kundli-Manesar-Palwal) expressway which will connect the Neharpur area with Delhi and Gurgaon. A 3-km flyover between Delhi and Faridabad will ease traffic bottlenecks at the Badarpur border is near completion. Secondly, metro connectivity from Faridabad border to South, East and Central Delhi will make many of the key locations of central and south Delhi accessible.
However, how fast the government executes infrastructure work and the generation of employment opportunities will still be key in determining property appreciation here.