How Greater Noida West Metro: Will Impact the property prices.
It’s no brainer, land prices are expensive near the metro stations and it keeps reducing as you move further away, land is the raw material used for construction and expensive material means expensive output. This leads to properties near metro stations becoming expensive.
Metro besides improving standard of living, because of ease of travel, social & commercial infrastructural development not only becomes the catalyst of real estate growth along it’s corridor and “influence zone” but also positively impacts the location’s preference, leading to increasing the demand and absorption within and around the location.
As per CEO, Track2Realty, After Greno West Metro becomes operational buyers could expect 10-20% appreciation in the short term and 25-35% appreciation in the long run.
Let’s try and understand how much ROI can a real estate buyer expect once the metro becomes operational, of course there is no sure short way of knowing that however, we can review a similar location and see how price has changed there over a due course of time (historic data is not a guarantee of future returns, it’s a mere indication of what a buyer may expect)
Dwarka back in 2009, located in the outskirts of Delhi with personal vehicles being the only mode of commute to Central Delhi or Gurgaon, the average property price in 2009 was around Rs 5,000 sq. ft. This number rose to Rs 9,500 sq. ft in 2018. The sectors closer to metro stations had even higher price appreciation.
Approximately 90% price appreciation over a period of 9-10 years.
What's common between the two locations Dwarka Delhi and Greater Noida West
Outskirts: Both are located in the outskirts, Dwarka is in the outskirts of Delhi and Greater Noida West is in the outskirts of Noida.
No employment opportunity: Dwarka is residential zone with no employment opportunity, resident were to travel to Central Delhi or Gurgaon for job, similarly Greater Noida West has no job opportunity, the resident has to travel to Sec 63 Noida (the IT HUB of Noida).
Lack of public mode of transport: Dwarka residents were mostly dependent on private vehicles, similarly, Greno West residents are forced to use private vehicles even after the crazy traffic woes due to unavailability of public mode of transportation.
Dissimilar things between the two location:
Things aren’t identical for everything, in terms of location both behave almost identical however when we compound it with Demand & Supply mathematics, things start to change pretty fast.
Inventory Overhang (Number of months it will take to sell current unsold housing inventory in the current market scenario, 18-24 months of inventory overhang is considered to be good): Inventory overhang is highest amongst satellite cities like Greno West formerly Noida Extension, Dwarka Expressway and Sohna Road.
However Dwarka Delhi had lesser inventory overhang with more absorption due to improved connectivity with IGI airport, Gurgaon and Central Delhi.
Oversupply Market: As per JLL report, Greater Noida West is a high-risk zone with over 2 lac apartments coming up which will ensure that prices remain stable, this oversupply would reduce the probability of price appreciation. Dwarka on the other hand had less of this problem at hand
Higher FSI (project density): Greater Noida West formerly Noida Extension has higher FSI than Delhi and/or Noida, leading to more number of residents residing in a smaller project, this will reduce the interest of people looking to buy property hence will reduce the possibility of price appreciation
Delhi: Low FSI, low rise buildings, enough greenery were the reasons why buyers preferred the location, as soon as the connectivity bottleneck issue was resolved by Metro the prices almost doubled.
Conclusion
Will Greater Noida West, follow the same level of price appreciation as we have seen in the case of Dwarka Delhi, well no one can predict that for sure but yes, improved connectivity, less traffic jams and good social infrastructure are all the things a buyer needs in order to consider a location for rehabilitation.
Noida extension gets a right tick in all these arrears, however, oversupply, higher FSI, lack of open and green spaces would impact the buyer sentiments, once the metro becomes operational the price would increase for sure however they won’t skyrocket the way they did in Dwarka Delhi because of the above mentioned reasons.
If you are on a budget and looking for a great location, Greater Noida West is the location for you but if you want a higher standard of living then you should refrain from this location because it’s mostly a budget location with oversupply which will reduce the probability of price appreciation over next 4-5 years’ time.
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