The Tale Of Two Cities Gurugram And Noida
NOIDA AND GURUGRAM BOTH ARE MODERN AND GROWING CITIES OF INDIA THAT HAVE WITNESSED A TREMENDOUS DEVELOPMENT IN LAST 15-20 YEARS. BOTH THE CITIES ARE OFTEN COMPARED AS COMPETITORS WHEN IT COMES TO DEVELOPMENT.
By: Leandra Monteiro
Over the last two decades, both Gurugram and Noida have become the preferred destinations for new residential and commercial setups. Within the two cities, the ease of accessibility, presence of solid urban infrastructure and proximity to key business centres are some of the attributes that many sectors of the two cities offer. Both the cities have developed real estate and infrastructure but in different ways. Noida infrastructure is more well planned offering wide roads, better water supply and basic residential facilities in all the sectors. Comparatively to Noida, Gurugram has become a home for many skyscrapers. In addition, Gurugram is more popular for its entertainment, restaurants and pubs.
CONVENIENCE OF CONNECTIVITY
Good connectivity is perhaps one of the most important drivers of demand as far as real estate is concerned. Take, for instance, the Noida real estate market. The launch of Noida Metro Aqua Line this year has positively impacted the home rental markets in the neighbourhoods, which are now connected through the Metro network. The extended Blue Line is also seen as boosting the prospects of the rental real estate market in the city.
Areas further south of Noida, including Greater Noida, have also been on the growth trajectory with the extension of the Delhi metro and the commissioning of the Yamuna Expressway that connects the national capitalto Agra. More recently, in the National Capital Region, the commissioning of the Hindon Elevated Road has resulted in the appreciation of property rates in Raj Nagar Extension in Ghaziabad by enhancing itsdirect connectivity with the UP Gate on the border of Delhi.
Similarly, sales of affordable homes increased in Gurgaon’s affordable pockets after the completion of the peripheral expressways this year. This could happen only because of improved connectivity to far-flung pockets. These connectivity projects are not only estimated to lift existing real estate prices but will also open up hitherto unexplored realty markets.
PROPERTY TRENDS IN COVID TIMES
Not able to reduce property price directly due to high circle rates, NCR real estate developers are offering benefits up to 25% of the property value to serious homebuyers in a bid to offload piled up inventory.
However, yields from rentals in Gurgaon have touched 3.5% which is higher than 3% which is the national rental yield average threshold. For Noida, the rental yields are also good at 3.2%.
Despite the price correction, Noida registered 5 per cent growth in sales volume during April-June this year. Gurgaon reported muted property enquires and sales at the beginning of the April-June 2020 quarter but, towards June-end, property enquires posted a 50% hike, especially in the price bracket of Rs 1-1.5 crore in Gurgaon
Demand, and price, of real estate is directly proportional to the distance of the location from areas providing jobs, industrialisation and civic amenities.