Noida and Greater Noida have emerged as new hotspots for luxury housing from affordable homes and mid-segment housing once. It was primarily driven by properties in the Rs 40-80 lakh price bracket. Yet, of late, it has begun opening doors for luxury launches above the hallowed mark of Rs 1 crore. These developments are not only scattered across new sectors but often happen on leftover land from previous projects, redefining the landscape of these once modest regions.
JLL’s report noted that demand is moving manifold, with sales for only the past year alone amounting to 14,822 flats worth Rs 24,944 crores. As developers cater to this surging demand, prices have shot through the roof, with the average apartment price hiked from Rs 1.24 crore in the year 2022 to Rs 1.68 crore in the year 2023. Interestingly, apartments costing above Rs 3.5 crore accounted for 23% of total sales in the year 2023, highlighting a growing interest in high-end buyer bases.
What is driving this change?
A variety of factors has led to Noida and Greater Noida becoming luxury destinations for real estate. Infrastructure development due to the completion of halted projects and a series of policy reforms makes these regions hubs for potential and growth.
Some of the major infrastructure projects currently in progress within the region include the upcoming international airport, dedicated industrial sectors, data center land banks, and expanded connectivity through vast road, rail, and metro networks that have enhanced the attractiveness factor of the region. This opportunity has been seized by developers such as Experion, M3M, Godrej, Ace, among others, who have launched super-luxurious apartments and high-end studio apartments at prime locations such as Central Noida. New offerings carry elevated prices, for instance, units priced at Rs 10,000 per sq ft, mostly in limited towers of premium 3- and 4-bedroom configurations.
Price appreciation has been the most pronounced in the 7X sectors (73, 74, 75, 76, 77, 78) and the Expressway sectors, ie, (108, 142, 143, 150, 152) – three-bedroom apartment hiked from Rs 5,800 per sq ft at 2019 to over Rs 10,000 per sq ft now. For instance, Country Group’s Ivy County was launched at Rs 6,000 per sq ft in 2019 and now commands a whopping Rs 15,000 per sq ft for ready-to-move-in units, while its newly-launched Ivory County is priced between Rs 15,000 to Rs 16,500 per sq ft.
Greater Noida West, also known as Noida Extension, has witnessed a good price appreciation. Prices that in 2019-20 were available between Rs 3,500-Rs 4,500 per square feet are now selling more than Rs 7,000 per square feet, irrespective of whether the project is complete or not.
Changing Buyer Preferences
Today, consumers in Noida and Greater Noida are not just looking for a house, but a lifestyle. And explains Himanshu Garg, Director, RG Group: “Customers are now looking for luxurious entrances, luxurious clubhouses, beautifully landscaped surroundings, and even facilities for visiting guests. This has encouraged us to enter the premium segment in Noida and Greater Noida West.”
The Completed Projects And Policy Support Factors
The most prominent driver for this new luxury boom is re-completion of stalled projects. Once delayed because of legacy issues, those projects have been revived and brought into action as a result of SWAMIH funding and the collective efforts of UP RERA. Today, promoters are also looking for joint development agreements, private funding, and asset monetization to bring into play the capital which is so sorely needed for completing those projects.
These have not only revived the industries but also helped revive the demand in the belt, so property values are on the rise. Dinesh Gupta, Secretary of CREDAI Western UP, says, “Large infrastructure projects like Jewar Airport and Film City have changed the mindset of this region. All these initiatives taken by the government to clear the pending projects and maintain law and order prompted all the promoters to go beyond the established trends.”
Rising Property Values
Says 99acres report, property prices in over 10 areas of Noida had risen, on average, 23% year on year in 2023. Prices in some areas, like Sector 108, rose as much as 60%. Prices for Jaypee Greens in Greater Noida jumped 30% from the year-ago period and an astonishing 92% from 2020 levels.
Key: Reforms Suggested by Amitabh Kant Committee: The state government also accepted the proposals of this committee, which further strengthened the real estate sector. Development Authorities Recalculated Some Portions of Outstanding Dues For developers, this allowed them to make payments in installments while guaranteeing on-time completion of projects and registrations.
Healthy Economic Hub
Here, the entry of Fortune 500 companies in IT/ITeS, research and consultation, added to the already high business and infrastructure hub credentials of the city. Many gainful job opportunities are available here, and the city is attracting talent from the entire nation. Therefore, property near workplaces is on high demand. Alakshendra Singh, head of corporate communications at Eros Group, espoused proximity to key infrastructure:.
“The past couple of years have also seen significant growth in both demand and price — especially for projects that are near future access points like Jewar Airport and Yamuna Expressway.” Shift in Buyer Behaviour after the Pandemic
It has also helped in redesigning the real estate landscape, said Sarthi Goel, CEO of Civitech Group. “The promoters are more aware about changing tastes of homebuyers. They are bringing limited units in the market, with advanced construction technologies to forego quality and timelines. This transformation has brought a premium tag to the projects coming up, but Noida and Greater Noida are still pocket-friendly compared to other premium markets.”.
In conclusion, Noida and Greater Noida have transformed into a vibrant, high-demand real estate destination. Infrastructure projects, policy reforms, and luxury offerings remain as a steady impetus toward becoming a prime destination for homebuyers and investors alike.
