Noida as Investment Destination

We all know that Noida is a very planned city and the infrastructure of Noida is perhaps one of the best in the country which means it’s a great place to live. But there has always been a question mark regarding Noida as an investment destination.

Historically Noida has lost out to Gurgaon as far as investment attractiveness is concerned. But looks like things are improving for Noida. Here are some of the reasons for the same:

Great infrastructures: Noida always enjoyed great infrastructure. It’s one of the most planned city in India. It has wide roads, metro’s covering prime localities, local markets across Noida, Malls, corporate etc. Traffic issue is not as bad as it’s in other regions of NCR.

Wider price gap between Noida and Gurgaon: The prices of Gurgaon over the last decade have run up a lot and because of that Noida has become more competitive. The prime location of Gurgaon would fetch around 12000-15000/sqft or more. On the other side in Noida you can get apartments at 6000-8000/sqft. This is almost 60-80% lower than Gurgaon which has virtually become unaffordable.

Another issue in Gurgaon is that the apartments are bigger in size, a typical apartment in Gurgaon would be 1500-2000 sqft or larger and on the other hand Noida apartments are much smaller in sizes.

So the overall ticket size in developed locality of Gurgaon would be in excess of 1.5cr but in Noida you can get a decent apartment within a crore.

No growth in the last 2 year: The last couple of years have been very bad for real estate sector, there is virtually no price rise in Noida. The prices have come down in most of the new upcoming locality of Noida. The builders have started giving lumpsum deal instead of bsp and adding multiple other charges. The resale market is also in a very bad shape as most of the investors are stuck and offering amazing distress deals.

All these mean super time for end users and investors.

Projects ready for possession: Noida witnessed huge real estate boom in the period of 2009-12. Lot of new projects were launched within this period from multiple developers and prices rose at a fast pace. The developers were just buying the land and launching the project without focusing on execution. Since 2013 the sales are flat, prices are not rising and the developers are under tremendous pressure. This has forced the developers to focus on delivery and completing their projects.

So now we are in 2015, most of the projects are getting ready for possession and there is still good gap between the prices of developed locality and the new upcoming sectors. The upcoming localities are also not too much far away from current developed sectors so the prices will even out in the coming days.

All these factors mean that Noida has become affordable and attractive for investors, with so many quality projects getting ready to deliver at reasonable prices, it has very good scope of capital appreciation. Since the projects will be ready soon you will also enjoy decent rental returns as well. Which means your cumulative returns would be more than decent on your investments.

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