What’s better Gurgaon or Greater Noida in terms of ROI- Let’s evaluate.

Gurgaon is a well-developed smart city of Haryana situated 30 km southwest of New Delhi in northern India. Gurgaon is considered to be the most premium location, generally higher income group and luxurious group lives in central Gurgaon. It’s known for its nightlife, IT/Industrial hub, Pubs, high end luxury brands and the list can go and on however not everything is great with respect to Gurgaon, it also has its flows, like water quality, air quality and less green area, overpopulation and traffic woes.

On the other hand, Greater Noida and Greater Noida West are less expensive compared to Gurgaon. Of course comparing two very different locations like these is not apple to apple comparison, it’s like comparing apple and oranges, on a personal note I like oranges.
It is quite difficult to tell you which one is superior or which one is not in terms of return on investment (ROI).

FEASIBILITY COMPARISON

From the above comparison, it is clearly visible that Gurgaon has the advantage of being close to the airport and within a radius of 5 kms of the project you’re schools, hospitals, shopping complexes however the metro connectivity is not good enough here also for public transportation cabs are available. And indeed, no doubt Gurgaon is an expensive bet.

While similarly in Greater Noida and Greater Noida west within the radius of 5 kms you’ll get everything from schools to shopping malls, hospitals, etc. In greater Noida and Noida extension, the distance to IGI airport is quite far but after the completion of Jewar airport also known as Noida International airport the distance from these locations to Jewar airport would be 29 to 30 kms. Also the upcoming aqua line metro will also boost the connectivity in Noida Extension as 9 stations are going to develop here and then the distance to metro station would be 2 to 3 kms only. In these locations you are getting all the facilities at affordable rates. Subsequently Greater Noida and Noida Extension is a better bet.
Now let’s understand these locations from price appreciation aspect;

DLF The Ultima, Gurgaon

Rental Yield= [{Rent *12} / Property Price]*100
Here, (+) means appreciation and (-) means decrement.

The average price of DLF Ultima in 2018 and 2022 is 8,500/ sq ft and 9,450/ sq ft. respectively. There is a price appreciation by 9%, rental appreciation by 14% and rental yield is appreciated by 4%.
Note: Good rental yield is between 5-8% however in India 3-4% is considered as good rental yield.

Purvanchal Royal City, Greater Noida

Wow, Greater Noida has shown massive growth here, the rental yield has increased by 10% however it is still below 2% which is bad, the prices and rental yield has increased by 35% and 50% respectively. Previously the average price was 4100/ sq ft in 2018 however today, the prices are 5700/ sq ft. (source of data is 99acres)

ACE City, Greater Noida West 

* Source: 99acres, magicbricks and a known person who used to live there.

Ace City in Greater Noida West, there is a price appreciation of 36% and rental prices have also increased by 25% however the rental yield has shrunk by 8%.
But Noida extension as a location is growing at a fast pace and once the aqua line is operational here the price appreciation in this location would be massive.

Conclusion: