Noida Property Market and Real Estate Noida

Noida Property Market and Real Estate Noida

NOIDA'S Real Estate Market is dependent on its IT Drivers. With that slowing down, The markets also saw a downturn. However, the metro is expected to turn the tide. This is probably the best time to buy property in Noida. Noida has bucked the NCR trend by registering an increase in demand for plots and individual houses over apartments. There has been 15-20 per cent rise in transactions, especially in the plots and individual houses segment, driven by a 15-20 per cent drop in capital values and stable rental values. New upcoming sectors such as Sector 93 and Sector 50 are preferred apartment locations. Apartment capital value in Noida saw a drop of up to 30 per cent. Values in Sector 12 dropped by more than 30 per cent in Q1 2009-2010. Sector 51 is the only area where values went up by almost 50 per cent. This is attributed to the fact that new premium apartment complexes are coming up here.
In Greater Noida transactions are down 40 per cent from January 2009 levels. Transactions are happening in the apartment segments. Capital values are down 15 per cent and plot values are down 20-30 per cent. Rental values are stable and rental transactions are happening at a good pace. Surprisingly, the values of under construction projects have gone down by 20-25 per cent.

Apartment capital values appreciated in sectors such as Alpha, Beta, Gamma and Omega by approximately 15-20 per cent in Q1 2009-2010. Plot capital values, on the other hand, dropped in sectors such as Alpha, Beta, Gamma, Delta, Eta and Chi Phi by 5-15 per cent. Golf Links is the only area where the values have increased by 20 per cent because of the sustained end user demand for premium properties.

According to Ravi Pundir, real estate broker in the city, "These markets were driven by investors. They still have money to invest and will re-enter the market when the economic scenario improves. Therefore, one sees the temporary lull in these markets."

With falling salary levels and job cuts, many p ro f e s s i o n a l s have exited Noida to neighbouring Greater Noida, Ghaziabad and Mayur Vihar where rental values were lower. This explains the fast pace of rental transactions in Greater Noida.

"Office space transactions have started in the Noida market, but Greater Noida will take another 1-2 years to improve," according to Aakash Aggarwal, Greater Noidabased realtor. Rental and capital values are down 10 per cent in Noida and 15-20 per cent in Greater Noida. IT is the major driver of the office market in Noida and is picking up at slow pace of 5-10 per cent.

In the retail market too, about 5 per cent of transactions are happening. Capital values are down 10 per cent and rental values are down 20-25 per cent. High street markets are preferred over shopping malls. While existing malls remain open, construction work on new malls has either stopped or is happening at a slow pace. Sector 18 is the commercial hub.

In Greater Noida too, very few inquiries have come in the past few months. Malls have witnessed a 15 per cent drop in capital values and 25 per cent drop in rental values. Rate of transactions has also dropped to 5 per cent. High street markets have not been badly impacted and investors too prefer high street markets. The construction works on malls have been halted.