Aided by either proposed or ongoing infrastructure development in emerging pockets, areas in NCR like Noida, Greater Noida and Faridabad have shown an increase in capital values in the July to September 2015 quarter.
Noida, Greater Noida and Faridabad are three zones in the National Capital Region (NCR) that have registered a growth in capital values in Jul-Sep 2015 quarter, thanks to proposed or ongoing infrastructure development. According to the Insite report by 99acres, while Noida and Greater Noida had a one per cent growth each in the latest quarter compared to Apr-Jun 2015 quarter, property rates in Faridabad jumped by two per cent in the same period.
Speaking about the growth in NCR, Sam Chopra, Founder and Chairman, RE/MAX India, Pan-India, says, “Development in infrastructure has been the driving force for capital rates in Noida, Greater Noida and Faridabad heading north, even when you look at the performance in the three months of Jul-Sep in 2015.”
Rakesh Yadav, Chairman, Antriksh India, Delhi NCR, points out that Noida has witnessed growth, thanks two major infrastructural trends - Noida Expressway and proposed widening of National Highway 24 (NH 24). The regions in Noida that have benefitted in the third quarter of this year include sectors 37, 46, 49, 93A, 143 and 143A as far capital rates are concerned. On the other hand, if you look at rental values, sectors 21, 25, 29, 47, 78, 93, 110 and 128 have seen healthy rental yields.
Affordable capital values and rapid industrialization has led to the growth of Greater Noida. As far as capital appreciation is concerned, Yamuna Expressway, Site C, Sector 4 and Sector Chi 5 have been the major gainers.
Highlighting the growth witnessed in Yamuna Expressway, Ashok Gupta, Chairman and Managing Director, Ajnara India Ltd., says, “From the availability of sports complexes and stadiums in the vicinity to rumors of a proposed airport at Jewar, Yamuna Expressway is expected to grow by leaps and bounds.”In terms of rental yields, NRI City has been the lone significant gainer in the region.
There is an interesting take on the reason driving growth in this region. Ajay Rakheja, Co-Founder and Chief Executive Officer, Creindia.com, Pan-India opines that the important reason for capital and rental values appreciating in Faridabad can be attributed to its selection in the list of smart cities. Being included in the list means an auto upgradation for the region’s normal settlements which will in turn attract more investors to the region. As far as capital values are concerned, Sectors 80 and 87 and BPTP have benefitted. As for rental values, the Gurgaon-Faridabad Road has shown a rise.
It will be interesting to see how these localities perform in the coming years as the impact of impending infrastructure plans unfold. Experts believe that Noida, Greater Noida and Faridabad will continue to show quarter-on-quarter growth, even if it is moderate.