Noida
has emerged as a major destination for home buyers over the last few
years. Noida and Greater Noida, along with Yamuna Expressway and Noida
Extension, provide affordable alternatives to middle class buyers in the
national capital region. Average home prices in these regions are
significantly lower than in Gurgaon, which is associated with high-end
apartments.
Plot versus apartment:
You can buy a plot for the price of an apartment along the Yamuna
Expressway, which connects Greater Noida with Agra. The world class
expressway provides easy access from Delhi.
However, don’t expect immediate capital appreciation because there is
an oversupply of plots in this area. Plots near the F1 track or in the
integrated townships coming along the expressway are better options.
Choosing a developer: Projects being developed by an
unknown builder, or a first time builder, are prone to execution delays.
They will be comparatively cheap, but may remain grounded forever.
Samir Jasuja, chief executive officer of PropEquity says buyers should
always pay a little premium but go with a reputed or branded developer
who will ensure the execution of the project even though it may still
get delayed.
Project specification:
Small always be beautiful. As buildings go taller, large open
spaces become a necessity. Look for a project that is adjoining a public
park, or has bigger common areas. There will be a small premium between
a 25-acre and a 50-acre project to start with, but with time projects
with better amenities command a bigger premium.
Absorption: Some areas like the Yamuna Expressway
and Noida Extension have large inventories and absorption could continue
to slow down. Homes in areas with low absorption rate are less costly,
but are suitable only for long term investors, who have a time frame of
at least 5-10 years. You should invest in such properties only if you
are an end user with no plans to dispose the property.
Geographical factors: Noida and Great Noida have high water table
unlike Gurgaon where ground water is not available. Noida has better
accessibility to Delhi as compared to Gurgaon, which relies only on the
Jaipur Highway. However, both Noida and Gurgaon fall in seismic zone 4,
where the risk of earthquakes is pretty high.
