Tag Archives: Delhi-NCR property market

Noida Extension weathered many challenges

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Bottom Line: No other property market or sub-city has weathered as many challenges as Noida Extension, now rechristened as Greater Noida West.

Noida Extension, Greater Noida Property, Greater Noida West, Delhi-NCR Property, Indian real estate market, India property market, Real estate news portal, real estate website, Real estate news in India, Track2Media Research, Track2Realty, NRI property market, Investment in Delhi-NCRStarting as an affordable destination, derailed by land acquisition litigations, regained with price escalation and higher FSI & density norms, and finally scaling up from affordable to premium housing, no other property market in India has weathered that many challenges and constant image makeover as Noida Extension. It has now been rechristened as Greater Noida West.

Largely viewed in the collective consciousness as the most affordable market of Delhi-NCR, probably the authorities did no justice to this market by positioning it as yet another micro market to supplement Noida and Greater Noida. More than the controversies and the litigations, the positioning of the market has been a challenge.

It was created as an altogether different micro market than Noida and Greater Noida but was never conceptualized as a sub-city, despite of the master plan having provisions of everything that a sub-city would need, including office spaces, IT spaces, retail, entertainment hubs, educational institutions and other necessary social infrastructure.

Post the controversies and clearances by the Supreme Court of India that ordered extra compensation to the farmers and the authorities, in turn, granting additional FSI (from 2.75 to 3.5) to the builders, the Noida Extension is still looking for an identity. This is despite the fact that the new launches in this part of the world, of late, are as much in the premium category as in the affordable segment.

The authorities, on their part, rechristened the name of the market from Noida Extension to Greater Noida West (that sounds like Meadows West of Texas). However, the market is still looking for an identity of a sub-city where even the official pin code has not been allotted thus far.

The question today is that with the kind of supply that is in the pipeline will Noida Extension grow out of affordable tag. Vineet Relia, Managing Director of SARE Homes feels that with upscale projects coming up in some areas of Greater Noida West and with the Stamp Duty in UP having been hiked from five to seven per cent, effective 1 April 2016, flats in Greater Noida West are bound to cost more. In such cases, the affordable tag will not be applicable to all projects in this region.

“Earlier, the positive verdict from the National Green Tribunal on the Okhla Bird Sanctuary issue was a big boost for developers and flat-owners in the region. But since properties in this region are on lease, transfer fees and lease rent also come into play, pushing up the total cost of the unit. Now, with the two per cent hike in Stamp Duty, there will be a further increase in property prices and that will impact sentiment negatively, putting a question mark on the affordable tag,” says Relia

Nikhil Hawelia, Managing Director of Hawelia Group points out that Greater Noida West is in line to deliver more than fifty thousand flats in the next three quarters and complementing Noida it will remain to be a destination for lower and middle income group. Majority of the apartment sizes in this region ranges from 700 square feet to 1500 square feet, whereas other adjacent sectors of Noida have 1200 square feet to 2500 square feet flats.

“Due to small ticket size and maintaining the equilibrium with Noida residential market, Greater Noida West will be considered as an affordable region for another couple of years. Initially the emphasis is always on meeting the basic needs and all construction and development works were majorly concentrated in fulfilling the required demand,” says Hawelia.

Analysts point out that with time and growth and settlement of MNCs, corporate houses and big scale industries in the next few years, a sense of high-end luxury residential as well as commercial establishments would be inevitable. After second phase of delivery, which is another four to five years down the line, this region will surely have great potential to become the next preferred destination for premium projects.

However, while Noida Extension is showing all signs to organically grow premium and shed the tag of affordable destination, the market is still looking for its distinct positioning as a sub-city.

 

Ghaziabad yet to unlock its potential

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Bottom Line: Ghaziabad may not have lived up to its potential to be among the global destinations, it is definitely on its way to be a top destination.

SARE Homes Ghaziabad, India real estate news, Indian realty news, Property new, Home, Policy Advocacy, Activism, Mall, Retail, Office space, SEZ, IT/ITeS, Residential, Commercial, Hospitality, Project, Location, Regulation, FDI, Taxation, Investment, Banking, Property Management, Ravi Sinha, Track2Media, Track2RealtyLas Vegas, London and also Ghaziabad in the same league! Believe it or not but the western hinterland of Uttar Pradesh was chosen to be having the potential to be among the 10 most dynamic cities of the world. A Newsweek survey, which put the city on the global map, said so as early as in 2006, but since then it seems the city has weathered many challenges in its quest for glory and fame as an urban metropolis city.

Very few have doubts over the potential of the city as an economic hub to emerge; still the confidence level of analysts is yet to be unlocked and untapped in this part of the world. That explains why Ghaziabad is inviting so much of attention, even in the wake of slow developments and the slowdown post the assessment of Newsweek.

Today, there is a clear shift of investors from the over-heated and saturated markets to Ghaziabad. Reason: during this slowdown Ghaziabad has been hip and happening with relatively lesser inventory issues and fastest delivery. Of course, the city has the right property for each and every segment of homebuyers.

Moreover, the city is on road to a complete makeover by adding malls, hi-tech cities and golf courses to its new face. At a time when the property markets across the Delhi-NCR region are softening, it is interesting to note how Ghaziabad is defying the trend.

It may not be a glorified property market like Gurgaon, or over pampered market like Noida with the best of infrastructure as its claim to fame, but then it is the safest market to invest from future appreciation standpoint.

When the land acquisition issues were plaguing other markets of Delhi-NCR, Ghaziabad stood as the safest market since there has been no government land acquisition in this region. In terms of infrastructure, though the unlimited potential has not yet been tapped, it still is much better than even some of the more costly markets in the region.

Analysts tracking the market movement in the region maintain that the way Gurgaon flourished in the wake of crumbling physical infrastructure of South Delhi, Ghaziabad’s time has come when the property markets of adjoining areas, including East Delhi, are crumbling under the weight of infrastructure pressure. The moot point is whether Ghaziabad will really emerge as a global city the way Newsweek had forecasted.

Facts are encouraging at a time when many property markets would better prefer to skip the statistics. As per a Track2Realty study the demand has been so steady in pockets of Ghaziabad that today in places like Vaishali, Vasundhara or Indirapuram not even 15 per cent of the projects are ready-to-move inventory.

The projects in these places are mostly mid-size housing and premium housing and the demand and supply is in sync. It is no mean achievement at a time when the Delhi-NCR market is sitting over an inventory of nearly two years. The increase in metro connectivity in and around Ghaziabad is leading the average working middle class to these locations.

“I find Ghaziabad anytime better than the costlier neighbouring markets of the NCR. While saturation and load of infrastructure is an inevitable reality in other markets, Ghaziabad still is in its infancy level of growth and development. I think quality of life is comparatively better here,” says Manoj Rajput, a resident of Vasundhara.

The infrastructure development has also boosted the real estate sales here. The proposed 3 Lane Bridge over Hindon River at G. T. Road, widening of the 6 lane to 8 lane road from Dabur T-junction to Meerut T-junction via Mohan Nagar and NH-58 and with proposed 6-lane link between NH-24 and NH-58 is expected to smoothen the communication with Delhi, Noida and Greater Noida.

“In these locations demand for ready-to-move inventory is more than under-construction units which are affordable as compared to other locations. The biggest traction point of Ghaziabad is the fact that most of the micro markets offer affordable housing here,” says Vishal Gupta, a local property agent.

Ghaziabad might have been late to prove the 2006 study of Newsweek right, but its destiny as a global city can only be delayed and not denied. With most of the big-ticket infrastructure projects getting ready in the next few years, the slow and steady growth curve of the district might skyrocket soon. More importantly, the district has ever expanding boundaries to grow and very few cities in India have this luxury of choice.