Bottom Line: The hub of malls, Noida property market is getting a facelift with the entry of corporate developers.
If only the statistics could tell the whole story then the critics would have written off Noida property market for the serious players long time back. But then the market potential and performance are two different things and the global experience also suggests that statistics alone cannot define the future growth direction of a given property market.
Therefore, despite of the critics raising concerns over the fact that Noida housing market is sitting over around one lakh units, it is a market where the seasoned players are betting big for the future growth. A closer look at Noida market reveals it is a global city in making.
It is an affordable market and the Noida Authority is also visualizing it to shape up as per Dubai model. Already, Noida has emerged as the new mall traction point of Delhi-NCR, which till now was only the USP of richer peer market, Gurgaon. Noida is today giving tough competition to neighbourhood markets in terms of availability of entertainment options.
The entry of corporate giants into the real estate space is all set to take the Noida growth story to the next level. Already, Godrej Properties and Tata Housing have entered into Noida market through a joint development model. The market buzz has it that a couple of more corporate giants are to soon announce their Noida entry.
Interestingly, it seems the organized segment of investors do understand the value of entry of corporate sector into Noida market. Immediately after Godrej Properties announced its entry into Noida, its stock prices on BSE went up.
The homebuyers are also enthused with the news. Deepti Rajpurohit, an IT executive feels the move will not only weed out non-serious players from the market but also set some benchmarks of professionalism in the business in Noida. According to her, it is the beginning of a new Noida that makes it an investment magnet.
“I won’t mind paying extra to the corporates, branded and reputed developers. It is not just a question of being brand conscious, but paying for trust and bridging the mismatch between promise and performance. I feel Noida market needs this kind of image makeover. It will change the city as the infrastructure in this part is among the best in India,” says Deepti.
Beyond the homebuyers’ vote of confidence, the move also raises the fundamental question as to whether Noida is finally emerging as the next growth corridor. Will Noida be aspirational market in the next few years, instead of affordable destination? What is the traction point of Noida?
Nikhil Hawelia, Managing Director of Hawelia Group believes Noida has in its DNA the making of a world class city. The kind of land parcels that are available here, and the kind of physical infrastructure that has been rolled out this city is actually a case study. The only missing point has been the lack of economic infrastructure. Now I believe with the corporate conglomerates entering into the market, the commercial property will also get a boost now.
“The corporate developers have certain level of tried & tested best practices that they carry forward from other matured property markets. This will naturally help even the small but serious developers of Noida who aspire to offer quality products and maintain best practices. It will also wipe out fly-by-night operators from this market,” says Hawelia.
Moreover, in comparison to more crystalized markets like Gurgaon, the city is still more affordable in comparison. Given that the government authorities are addressing many of the regulatory hurdles, it is expected that Noida market will fair better and appreciate in value over a period of time.
Of course, these ground realities have not gone unnoticed by the corporate players into the real estate developments. Their entry in the Noida market is all set to make the built environment more competitive and professional; something that the homebuyers wish for.