Have the affordable property prices in Noida Extension been a boon or bane for the development of the region?
After nearly a decade of Noida Extension being carved out and planned by the government agency, the region faces numerous civic woes – from bad roads and traffic bottlenecks, to overall infrastructure deficit. This raises the question, of whether mere affordability can continue to attract home buyers to invest here.
Nikhil Hawelia, managing director of the Hawelia Group, dismisses the notion that Noida Extension is only a destination for inexpensive homes. According to him, the market has just started shaping up and it cannot be dismissed, as just another affordable housing destination.
“Around six to seven years ago, when the first set of projects were launched, the price point was around Rs 1,800 per sq ft. Today, the average price point is Rs 3,600 per sq ft, with quality projects at Rs 4,000 per sq ft and above. This is an appreciation of more than 100 per cent, in a market that is still being occupied and at a time, when other markets across the country have remained subdued. The pricing, in the next few years, will definitely be comparable to the rest of Noida,” says Hawelia.
Nevertheless, the fact remains that a large share of ready apartments remain vacant, even if these have been sold out. Many buyers who bought apartments in Noida Extension, do not wish to shift to this locality, as the livability index is less than desirable.
Noida Extension: Key market indicators
- Price points in Noida Extension have not been able to breach Rs 4,000 per sq ft.
- Most of the properties are around Rs 3,000-3,200 per sq ft.
- There has been no price appreciation for over a year.
- JLL, in a report, had earlier declared Noida Extension as high-risk zone and advised home buyers to stay away. The report said that with around two lakh apartments coming up, the market is not likely to witness appreciation soon.
- Local public transport facilities are still not fully functional.
- Noida Extension has higher FSI and density norms, than Noida.
- Several physical infrastructure projects remain pending and social infrastructure is sorely lacking.
- There is no clarity, vis-à-vis the proposed metro for Noida Extension.
- Construction of most of the office spaces, IT buildings and SEZs, are behind schedule.