Rates of Apartments in Noida Soar

Formerly, Noida and Greater Noida were recognised for affordable and mid-segment housing, but the trend has changed significantly in the past five years. These regions have become some of the most sought-after locations for high-quality living standards when it comes to property ownership of houses and apartments in Noida. 

A recent report by JLL Property Consultant reveals that 14,822 flats worth approximately Rs 24,944 crore were sold in Noida last year, which shows a rapid growth in demand for luxury flats. This increase is supported by a steep rise in the average price of apartments, which increased from Rs 1.24 crore in 2022 to Rs 1.68 crore in 2023. Moreover, 23% of 2023’s total sales comprised apartments priced at Rs 3.5 crore and above.

Infrastructure Development Drives Growth

One of the most important factors defining Noida’s transformation is the development of critical infrastructure projects. These projects, such as the following, have resulted in monumental improvements to logistics and connectivity in Noida-Greater Noida.

Noida International Airport: The airport will eventually become India’s largest airport and is expected to complete phase 1 in October. 

Railway and Metro Lines: The Noida Metro Rail Corporation (NMRC) has moved forward in the process of expanding the Aqua Line corridor to Greater Noida West by approving a new Detailed Project Report (DPR).  This extension project will cover 11 stations starting from Sector 51 in Noida to Knowledge Park V in Greater Noida.

Network of Roads: Noida has an excellent network of 6 lane roads and expressways, such as the DND Flyover and the Noida-Greater Noida Expressway, for ease of mobility within and across the city. The city also comprises overpasses, and an expanding metro network  to help regulate traffic.

Data Centre Land Banks: This year, Japanese tech firm NTT Ltd. launched its new data centre campus, Noida 2, and opened its first data centre. Furthermore, the state government is establishing solar energy parks to meet the energy demands of the proposed data centre park.

Industrial Sectors: Noida has emerged as the preferred destination for warehousing and industrial property due to superior connectivity, better infrastructure and lower rental costs compared to other cities in NCR. This has led to many business establishments, manufacturing industries, and other big giants such as IKEA to establish their headquarters in Noida.

These infrastructure developments have also added aesthetic value to the general outlook of the area and accessibility to those who need to be in close proximity to their places of work. Gautam Buddh Nagar, which hosts many Fortune 500 companies in the sectors of IT/ITeS, research, and consulting, has witnessed a rise in the demand for upscale residential spaces since many professionals wish to live closer to their workplace.

Stalled Project Completion Enhances Confidence

Another contributing factor to the changes in the real estate market in Noida is the completion of previously held projects. The additional support from the government in terms of solving legacy stalled projects and maintaining the principles of law and order were well-received while SWAMIH funds and UP RERA, managed to bring the stalled projects back to life. Promoters have also sought the required funding through joint development agreements (JDA), private funding, and asset monetisation.

Such efforts have made the promoters go beyond the trends in the region, as they are fully confident in the region’s potential.

The revival of such projects has not only revived the respective sectors but has also increased buyers’ confidence in the region. Specialists have mentioned that large-scale infrastructural projects like the Jewar Airport and Film City have enhanced the public’s perception of the region.

Experts have appreciated these government policies saying that in the last two years, they have noticed a good rise in demand and prices for projects including apartments in Noida.

Shifting Consumer Trends Drive The Consumption of Luxury

With the changes that have taken place in the real estate market in Noida, the shift in the tastes of the consumers were also noticed. People are not looking for a mere nicely furnished apartment anymore; they are looking for an experience. In this respect, builders in Noida have come up with ultra-luxury apartments in Noida and hi-end studio apartments with luxurious entrances, opulent clubhouses, green landscaping, and guest facilities.

Thus, there has been an increase in Noida flat prices and of all types of homes, making it evident that there exist forces in the market that are driving the prices up.

The change in Noida’s real estate scenario can be seen in the changes in the price structures of apartments with regard to different sectors. New launch price of projects has appreciated most in the 7x (73, 74, 75, 76, 77, 78) and expressway sectors (sectors 108, 142, 143, 150, 152) where the cost of a 3 BHK flat in Noida has gone up from around Rs 5,800 per sq ft in 2019 to over Rs 10,000 per sq ft now.

Even flats in Greater Noida West or Noida Extension also witnessed high growth in prices. While in FY 2019-20, a property was available in the range of Rs 3,500 to Rs 4,500 per sq ft, currently, it is being sold for Rs 7,000 plus per sq ft, whether or not it is completed and ready for occupation.

Conclusion

The change in Noida’s status from an affordable market to a luxury property market is the best example that proves the potential of this city and the government’s preparedness to develop infrastructure and implement favourable policies. Since more and more buyers are looking for a luxurious lifestyle within commuting distance of their places of work, the requirement for high-end residential units in Noida and Greater Noida will continue to grow.

This has led to the provision of high end amenities and projects by builders in Noida, hence promoting the growth of the luxury real estate market in the region. The government of Noida has remained quite supportive and with the connection to most of the vital infrastructure projects the city is expected to emerge as one of the most preferred locations for luxury living in the coming years.