Cities – Page 2 – FindMyProperty

Real Estate Sector seems to have taken a big hit from demonetisation, with builders seeing their sales drop in last three months and now holding their hopes on buyers coming to market with ‘white money’.

Buyers appear to be holding back their purchase plans on hopes that interest rate would fall and property prices would be fall post demonetisation in residential sector, which some see as a cleansing of a sector infected with prohibited funds. As per industry data, resale or secondary market, where maximum black money gets deposit, has been worst-affected as transaction almost dried up and barring some interest in trademark properties, due to lack of cash after fighting of old 500 and 1000 notes.

Though, many builders and property experts also said it is too early to say that black money has been completely removed from the sector though it has become especially difficult to effect cash transactions as of now. But previous year have been many policies with RERA (Real Estate Regulatory Act), Benami Properties Act and low circle rate, would be help in destroying black money in real estate sector to a great scope and improve the industry value.
Due to demonetisation, in primary and secondary market, were affected during November and December as buyers postponed their buying decisions not only in real estate but across the entire sector. Sales in the primary market have started to improve, with banks lowering interest rates on home loans, in NCR Market, which huge delay in projects completion. Real Estate Market will become totally transparent.

Real Estate Sector of Noida and Gurgaon in the NCR (National Capital Region) has grown at the rapid pace over the last decade and continuous to do so. Noida is one of the major planned city in Asia where as Gurgaon has been huge development with many options such as IT/ITES, industries and shopping complex etc. Both cities have attracted not just end users but largely investors. Property prices have seen a steep rise in both the areas over the last few years.

But, if one asks simply. Gurgaon or Noida: Which is better for investment?

The answer is fairly very difficult, since the fact that both cities have shown remarkable growth in the past and continue to do so with several new planned projects. From investment point of view, along with location, many points have to be kept in consideration such as infrastructure, connectivity, quality of living, demand & supply etc. Hence, to ultimately decide which city is better among the two, we will explore some key differences. While there are many similarities, there are also many differences in terms of environment, facilities and most importantly real estate developments.

Analysis of Noida:

Strength of Noida

It’s located close to Delhi, includes both industry (hub of automobile ancillary industry and IT/ITeS) and residential development with advanced infrastructural facilities, landscaped green belts and Noida-Greater Noida Expressway (about 40 sectors are planned), DND Flyover, an 8-lane expressway connecting Noida and Delhi. Yamuna Expressway connects Noida to Agra via Mathura. An extension from Noida City Centre station to sector 62, Noida is proposed in the phase-III of Metro. Rich in social infrastructure and commercial market – many premium shopping malls – The Great India Place mall, Spice World Mall, etc hospitals (Max, Apollo, Fortis etc) and educational institutions in Noida locality and also Key IT Parks – Logix Cyber Park, DLF IT Park, Stellar IT Park etc. Key SEZ developments are Unitech Infospace SEZ and 3C Oxygen SEZ.

Noida City Center is being developed on a 99 hectare plot, with facilities like big offices, cultural centres, multiplexes, five star hotels, residential blocks and much more. Noida also has an 18-hole Golf Course of International Standards.

Weakness of Noida

Noida witnessed maximum number of residential unit launches in the country in the last three years and prices have become sky-high. There is an oversupply of office space and therefore the rents in this submarket are unable to appreciate in recent times. Oversupply situation in commercial real estate market is capping the appreciation of rents, many developers will slow down or resist construction activity to rationalise the supply.

Analysis of Gurgaon:

Strength of Gurgaon

Gurgaon is also located close to Delhi (about 32 kms) from South-West Delhi. Gurgaon and Greater Gurgaon are becoming one of the preferred luxury destinations in India. There are 11 metro stations in Gurgaon, of which five are managed by Delhi metro which include HUDA City Centre, IFFCO Chowk, MG Road, Sikanderpur and Guru Dronacharya. Remaining six stations are operated by Rapid Metro: Sikanderpur, Phase 2, Vodafone Belvedere Towers, IndusInd Bank Cyber City, Micormax Moulsari Avenue and Airtel Phase 3. Gurgaon has more than 500 Fortune listed companies. Recent Haryana government has taken efficient decision for the upliftment of the city. Rapid metro is likely to improve connectivity and transport system in Gurgaon. Greater Gurgaon has immense potential to develop and avoid the mistakes that Gurgaon made. Physical and social infrastructure has to keep pace with population growth.

Strength of Gurgaon

Gurgaon has seen haphazard development. It was a private company that gave shape to the city. Gurgaon has one of the worst physical and social infrastructures in the country.

KEY DIFFERENCES:

• Noida has a better planned infrastructure in comparison to that of Gurgaon where liveability is still a major concern in many areas.
• Noida has better water and electricity supply system with most of its electricity supply being privatized. On the contrary, condition of power supply in Gurgaon is dependent upon Haryana State Electricity Board which in itself is not so productive/efficient.
• Minimum road width in Noida’s industrial sectors is 80 feet as against just 45 feet in Gurgaon.
• No polluting industry is permitted in Noida.
• Education: For children schools, Gurgaon has more and better established international schools than Noida.
• Physical infrastructure in Noida and Greater Noida is followed by real estate development including commercial and residential. While in Gurgaon, it is just the reverse. Infrastructure is developed only after the real estate potential of an area has been almost fully exploited.
• UP as a state is too large and Noida is among the other many cities including Ghaziabad, Lucknow, Kanpur, among others. Whereas Haryana is smaller and Gurgaon is probably the only cash cow. Hence, the latter has always had and will continue to have better Government focus than Noida.
• Wide and better roads, public transport connectivity in each part of Noida, low cost of living, better connectivity through expressways, large green landscape areas, environmental friendly policies, and other related lifestyle facilities in Noida gives it an edge over Gurgaon.