Noida emerging as hotspot for premium real estate

Customers are looking for a lifestyle, not just a nice apartment. They now ask about luxurious entrances, opulent clubhouses, landscaping, and even facilities for visiting guests - Himanshu Garg, RG Group Director

Noida: Noida and Greater Noida, once known for affordable and mid-segment properties, have emerged as hotspots for premium real estate over the past five years. Previously limited to properties in the Rs 40-80 lakh range, new launches now frequently exceed Rs 1 crore, often in the same sectors and on leftover land from earlier projects.

According to a report by property consultant JLL, 14,822 flats worth Rs 24,944 crore were sold in Noida last year. This surge is underscored by a significant increase in the average apartment price, which rose from Rs 1.24 crore in 2022 to Rs 1.68 crore in 2023. Apartments priced at Rs 3.5 crore and above made up 23 per cent of total sales in 2023.

Stakeholders believe the transformation is driven by several factors, chief among them being infrastructure development, completion of stalled projects, and favourable policy changes. Key infrastructure projects include the development of an international airport, dedicated industrial sectors, data centre land banks, and an extensive network of roads, railways, and metro lines, all of which have significantly improved connectivity and logistics in Noida and Greater Noida.

Developers such as Experion, M3M, Godrej, Ace, County Group, Max are offering ultra-luxurious apartments and high-end studio apartments in Central Noida. Groups like Express, DASNAC, RG, and others have introduced units starting at Rs 10,000 per sq ft, featuring limited towers with three- and four-bedroom configurations.

Price appreciation has been most notable in the 7x (73, 74, 75, 76, 77, 78) and expressway sectors (sectors 108, 142, 143, 150, and 152). For example, the cost of a three-bedroom apartment in these sectors has increased from around Rs 5,800 per sq ft in 2019 to over Rs 10,000 per sq ft today. Country Group's Ivy County, initially priced at Rs 6,000 per sq ft in 2019, now commands Rs 15,000 per sq ft with ready to move in units while rates in its recently-launched Ivory County are between Rs 15,000 sq ft and Rs 16,500 per sq ft. Ivy County is located in Sector 75 Noida, while Ivory County is in Sector 115 Noida.

Greater Noida West, also known as Noida Extension, has seen a significant rise in prices as well. A property that was priced between Rs 3,500 and Rs 4,500 per sq ft in 2019-20 now sells for more than Rs 7,000 per sq ft. Whether a property is completed or ready for occupancy, prices in this region have increased steadily.

RG Group Director Himanshu Garg highlighted the changing preferences of buyers. "Customers are looking for a lifestyle, not just a nice apartment. They now ask about luxurious entrances, opulent clubhouses, landscaping, and even facilities for visiting guests. This shift in demand has encouraged us to enter the premium segment in Noida and Greater Noida West," Garg said.

A critical factor influencing buyer sentiment is the completion of previously stalled projects. Various legacy issues had delayed these projects, but the availability of SWAMIH funds and efforts by UP RERA have facilitated their completion. Promoters have also turned to joint development agreements (JDA), private funding, and asset monetisation to secure the necessary funds. The resurgence of these projects has not only rejuvenated the respective sectors but also driven demand and prices upward.