Metro connectivity in all real estate markets positively affects both residential and commercial stock as commuting gets easier and valuations improve. However, prices are likely to be less in saturated areas and more in new markets where habitation is yet to settle and connectivity expected to improve .
Driving along Noida City Centre towards Sector 50 and further down to Sectors 78 and 79, you can see construction activity in full swing. While there are thousands of apartments already habited, some are still under construction. While Sectors 50, 52 and 53 are considered high-end with prices ranging from Rs 8,000 per sq ft to Rs 12,000 per sq ft, most projects located in Sectors 75, 78 and 79 where construction of the Metro is in full swing, are affordable with price points ranging between Rs 4,500 per sq ft to Rs 5,500 per sq ft. If one takes a turn towards the Noida Expressway through Baghel Road, the first metro station expected to come up after Sector 82 is the one in Sector 137. It is surrounded by over a dozen projects and as many as 25,000 housing units. Many people have already moved into these projects. The Faridabad, Noida, Ghaziabad road (currently under construction) intersection is also close to this area and is expected to cut down driving time to Faridabad by 25 minutes.
These projects are flanked by two commercial projects along the expressway where some companies have already moved in. Further down the road in Sector 143 are some 10,000 housing units by renowned developers. Sector 150 on the right side of the expressway has several projects under construction and about 10,000 units are expected to come up here. Several realty brands currently active in Gurgaon are also likely to launch projects in this sector in the coming months. The prevailing price in this sector is around Rs 4,000 per sq ft to Rs 5,000 per sq ft. Since sports facilities are also coming up here, this area is likely to be developed as a low-density sector. Also, while the floor area ratio (FAR, which allows more space to build on) in Sectors 75, 78 and 79 is around 4, it’s 1.75 in this sector).
Metro stations to come up close to this sector are 146, 148 and 154, which, along with sectors 156 and 157, had been reserved for SEZs under the Noida Master Plan. Currently there is no habitation in these sectors and the stations are being built for future use. Further down is sector 168 where around 6,000 units are under construction. It’s likely that the authorities have decided to plan the entire Metro route now because of the long-term benefits involved as construction costs will be higher 10 years from now. Building a station on an operational route also has its added hassles. City and Industrial Development Corporation of Maharashtra Ltd (CIDCO) had developed Navi Mumbai and Vashi similarly. When the suburban areas were
planned 20 years ago with virtually nil occupation. An established network helps in marketing both the sectors and projects better. Areas also command a premium as they are better connected, says Vivek Dahiya founder and CEO, GenReal Advisers.
Getting infrastructure in place first also makes affordable housing successful as outskirts of cities get connected. “Here the main objective is to connect Noida and Greater Noida and to do it in one shot. In my opinion this is a good move,” he says.
The 22-km Noida-Greater Noida Expressway is the road link between the two cities. A 30-km Metro stretch is now under construction that is expected to link Sectors 50, 75, 78, 79 and most sectors along the expressway with Greater Noida.
Once the Metro is operational, says Anckur Srivasttava of GenReal Advisers, “this stretch will be a preferred corridor for live, work and play. It offers exciting residential options in the range of Rs 4,500 to Rs 5,000 per sq ft. Prices are expected to remain stable for some time to come as there is oversupply in this market.”
In areas, however, where social infrastructure is in place and people have moved in and some offices have opened, there is room for appreciation in the range of 5% to 10%,” he says.
Shveta Jain, managing director, Residential Services, Cushman & Wakefield, India, says a lot of supply is likely to be created along this stretch in the next three to four years. These are the affordable pockets of Noida (unlike Sector 93 and Jaypee Township). Enough pent-up demand also exists over here for housing in the range of Rs 4,500 per sq ft to Rs 5,000 per sq ft. Supply is available over here for anything between Rs 50 lakh and Rs 1.5 crore.
Also, the housing supply expected to come up in these sectors will be staggered and will not come in at one go. This will ensure that consistent demand exists for the next few years.
“Metro connectivity will definitely augment habitation in these locations. New launches are expected in this sector, especially by brands going,” she says.