Over the last 2 decades, and more especially over the last 10 years, NOIDA has witnessed transformation from being a satellite town of Delhi to a self-sustaining city with sound social and physical infrastructure. the expansion has been primarily driven by increased activity in IT/ITeS and industrial developments within the town over the past 20 years.
After coming into administrative existence in 1976, initial growth in Noida was primarily driven by manufacturing and support services. However, over the last 2 decades, the region has witnessed IT & ITeS-led growth and emerged as an alternate to Gurgaon as an economical office destination.
During the last decade gone , Noida has witnessed consistent infrastructure upgrades in terms of road and penetration of MRTS (Metro lines), which has attracted buyers towards all areas of the town .
It witnessed major activity during the amount 2010 to 2014, accounting for ~ 70% of the organized new age residential supply of the town, with average quarterly launch. Valuation and Advisory Services at Colliers International India.
After this 5-year period, the region witnessed a slump in land activity with dip in launches also as absorption. The effect got more pronounced post demonetization, i.e. within the years 2017 & 2018, wherein the typical quarterly new launches dipped to ~ 500 units. During this era , most of the absorption has been within the sort of secondary purchases, while absorptions even in primary markets were either with projects closer to completion or with developers of repute.
“With regards to capital values, the residential segment has not returned much over the previous couple of years. The capital values over the last 2 years have clocked moderate growth at city level (CAGR ~ 3%), with some outliers being present within the sort of launches by reputed players, who are ready to command premium within the region, totally on the idea of their execution diary ,” says Kashyap.
Owing to significant existing unsold stock (31 months to inventory) including the impact of COVID-19, the region is predicted to witness resistance in terms of capital value appreciation. The demand are often expected to be driven mostly by end-users, which successively would imply a bigger share of absorption to be directed towards projects closer to completion or deals within the secondary market,” says Kashyap.
