Housing prices are rising as Noida becomes luxurious. This is why

Noida: Noida and Greater Noida, once known for affordable mid-range properties, have emerged as hotspots for premium properties in the last five years.

The value of new projects, which were previously limited to properties worth Rs 40 to 80 lakh, now often exceeds Rs 1 crore, often in the same sectors and on land left over from earlier projects.

According to a report by real estate consultancy JLL, 14,822 apartments worth Rs 24,944 crore were sold in Noida last year.

The sharp increase is highlighted by the significant increase in the average apartment price, which rose from Rs 1.24 crore in 2022 to Rs 1.68 crore in 2023. Apartments priced at Rs 3.5 crore and above accounted for 23% of total sales in 2023.

Stakeholders believe that the transformation is due to several factors, the most important of which are infrastructure development, completion of stalled projects and favorable policy changes.

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

Developers like Experion, M3M, Godrej, Ace, County Group, Max offer ultra-luxury apartments and high-end studio apartments in Central Noida. Groups such as Express, DASNAC, RG and others have introduced apartments starting from Rs 10,000 per square meter, with limited high-rise buildings with three- and four-bedroom configurations.

Price appreciation was most noticeable in sectors 7x (73, 74, 75, 76, 77, 78) and expressways (sectors 108, 142, 143, 150 and 152).

For example, the cost of a three-bedroom apartment in these sectors has increased from around Rs 5,800 per square meter in 2019 to over Rs 10,000 per square meter today.

Country Group’s Ivy County, initially priced at R6,000 per square meter in 2019, is now offering R15,000 per square meter for move-in ready apartments, while rates in the recently launched Ivory County range from R15,000 to R16 500 rupees per square meter Ivy County is located in Sector 75 Noida and Ivory County is located in Sector 115 Noida.

Greater Noida West, also known as Noida Extension, has also seen a significant price increase. The property, which was priced between Rs 3,500 and Rs 4,500 per square meter in 2019-20, is now selling for over Rs 7,000 per square meter. Whether the property is completed or ready to move in, prices in this region continue to rise.

RG Group Director Himanshu Garg highlighted the changing preferences of buyers.

“Customers are looking for a lifestyle, not just a nice apartment. They now ask about luxurious entrances, lavish clubs, landscaping and even amenities for visiting guests. This shift in demand has encouraged us to enter the premium segment in Noida and Greater Noida West,” Garg said.

An important factor influencing buyer sentiment is the completion of projects that were previously stalled.

Various legacy issues delayed these projects, but the availability of SWAMIH funds and the efforts made by UP RERA facilitated their completion. Promoters have also turned to joint development agreements (JDAs), private financing and asset monetization to secure the necessary funds.

The resurgence of these projects has not only revitalized the respective sectors but also resulted in an increase in demand and prices.

Dinesh Gupta, Secretary, CREDAI Western UP, said, “Large-scale infrastructure development such as the construction of Jewar Airport in Film City has significantly improved the public perception of the region. The government’s efforts to resolve stalled projects and maintain law and order have prompted promoters to offer beyond the established trends.” )

There has been a significant increase in property prices this financial year and according to the 99-acre report, prices in over 10 areas of Noida have increased by 23 per cent year-on-year, with the most significant increase seen in sectors 108 (60 per cent) and 144 (51 per cent).

The report shows that prices at Jaypee Greens in Greater Noida have increased by 30 percent year-on-year and 92 percent from 2020.

Another important factor contributing to this growth is the state government’s acceptance of the recommendations of the Amitabh Kant Committee. The development authorities have recalculated the outstanding contributions, enabling developers to pay the contributions in installments and proceed with the registration of units.

The perception of Noida has been further strengthened by the government’s push for business and infrastructure development. Gautam Buddh Nagar is currently home to Fortune 500 companies in IT/ITeS, Research and Consulting, creating ample employment opportunities and attracting job seekers close to their workplace.

Alakshendra Singh, director, corporate communications, Eros Group, said, “We have seen a noticeable improvement in demand and pricing over the last two years, especially for projects on 130-meter roads and future access points such as Jewar and Yamuna airport. Expressway.” Civitech Group CEO Sarthi Goel said that post-pandemic, there has been a drastic change in the image of properties and projects belonging to Noida and Greater Noida regions.

“Promoters are more aware of the changing tastes of homebuyers and are learning from previous experiences. They are now introducing a limited number of units and towers, using the latest construction technologies in construction to avoid any compromise on quality and schedule.

“Of course, this will add a premium tag to the upcoming projects and this market is still pocket-friendly compared to other regions having similar ones,” Goel added.