Greater Noida : Locality Snapshot
1 Table of Contents Overview:...... 2 Implications of Master plan and Regional plan:...... 2 Metro Centre:...... 2 Major Proposals:...... 3 Land-use:...... 3 Implications of proposed infrastructure:...... 4 Industries:...... 4 Metro:...... 4 FNG(Faridabad-Noida-Ghaziabad) Expressway:...... 5 Yamuna Expressway:...... 5 Physical Infrstructure:...... 5 SWOT Analysis...... 7 Residential Market Analysis:...... 8 Supply and Absorption:...... 8 Market Segmentation:...... 10 Rental Yield:...... 13 Conclusions:...... 13 References:...... 14
Overview: Greater Noida is a part of NCR(National capital Territory) located in the state of Uttar Pradesh. It is being developed as a linear city by GNIDA (Greater Noida Industrial Development Authority). Due to its locational features, it is to be developed as an industrial city to cater the increasing industrial needs of NCR. In NCR Regional Plan-2001, two areas Surjapur and Kasna were identified in Greater Noida. It is proposed in the plan that these two regions will be developed to accommodate 1.5 lakh population each. NCR Regional Plan-2021 was approved on 17th Sept 2005. In this plan, Greater Noida is identified as ‘Metro Centre’ and is delineated in the ‘Rest of NCR’ zone. Implications of Master plan and Regional plan:
Metro Centre: In the proposed six-level hierarchy system of settlements in NCR Regional Plan-2021, Metro Centre stands in the top which can accommodate more than 10 lakh population. Metro Centres are identified with a main aim to absorb the economic development impulse of Delhi. It can be achieved by developing it with better facilities and planning than that of Delhi. Connectivity and Infrastructure being the two main parameters to achieve this aim, it is proposed to upgrade the connectivity by expressways and metro. Efficient inter-urban mass transportation system along with excellent physical and social infrastructure will help in the population demand shift from Delhi to Metro Centres.
2 Major Proposals: 1. Greater Noida’s development to metro centre is highly dependent on linkages. So adequate road and rail linkages are proposed for swift movement of both freight and commuters. 2. Grid-Iron sytem (Grid pattern design) which is being followed in Noida, Noida Extension, Ghaziabad, Faridabad etc is proposed here also in Greater Noida. 3. Regional level landuses such as institutional uses, industrial uses, SEZs are placed at the periphery of the city so that the frieght traffic will not interrupt the inner roads. 4. Commercial areas are distributed evenly with a hierarchy in the residential areas. 5. 130 m wide Noida-Greater Noida expressway is proposed connecting the linear city from north to south and also connects to Noida and Delhi. 6. Major ecological resources such as Hindon river, Lohia rivulet, lakes and other forest areas are to be safeguarded from any kind of pollution and exploitation.
Land-use: In the Master-plan-2021, Land-use division has been proposed with more importance given to the Industrial, Residential and Recreational sectors. Thus promoting the developement to be environmental friendly without any harm to the existing natural resources. According the existing land-use distribution, the tranportation sector lags behind in the development. It is also proposed that by 2021 more than 15% of the land will be used for the transportation infrastructure connecting the city to most parts of NCR.
Table 1: Landuse distribution( 2001-Existing, 2011, 2021- Proposed) 2001 2011 2021 Landuse Area (in Ha) % Area (in Ha) % Area (in Ha) % Residential 1310 25.8 3000 22.1 5000 22.36 Industrial 1596.96 31.5 3027.3 22.3 4201.23 18.88 Commercial 99.74 2 720 5.3 1200 5.39 Institutional 570.63 11.2 2502.7 18.4 3473.99 15.51 Green areas 1361.9 26.8 3000 22.1 5000 22.36 Transportation 137.32 2.7 1280 9.45 3339.78 15.01 SEZ 40 0.3 40 0.78 Total 5075 100 13570 100 22255 100
Source: Masterplan-2021
Figure 1: Greater Noida Map
3 Source: Masterplan-2021 Implications of proposed infrastructure:
Industries: Three new industrial projects will be developed in Greater Noida- Integrated Industrial Township, Model transport hub and a Multi-modal logistic hub. This will give a huge boost to infrastructure development which will increase the demand of real estate in Greater Noida. 1. The integrated industrial township is planned to be built on 760 acres of Greater Noida. 2. The model transport hub will be developed on 400 acres of Bodaki region in Greater Noida. 3. The multi model logistic hub will be developed in Dadri spreads over 1200 acres. These three projects are located along the railway line, which is the major mode of transport. The projects are along DMIDC, (Delhi Mumbai Industrial Dedicated Corridor) a freight corridor which ends at Dadri in Greater Noida.
Metro: There is a plan to develop 60km fast Metro connecting IGI airport under 50 minutes from Greater Noida passing through Bodaki, Pari chowk, Sector 93 to Badarpur and Chhatarpur. The fast metro is expected to be in place by 2021, by which the connectivity through airport will be amplified.
4 The existing Delhi metro which connects most of the urban areas in NCR is also proposed to spread its connectivity to Greater Noida. DMRC(Delhi Mtero Rail Corporation) and UP Govt working on extension of the existing metro line from Noida City Centre to Greater Noida. The first phase of this work of 29.7Km will start soon and will gain momentum. All the approvals for this concerned project has been cleared and the DPR (Detailed Project Report) has been approved. The construction work will not be done by DMRC instead will be done by NMRC (Noida Metro Rail Corporation) formed recently for this purpose. This metro development will connect the Greater Noida to the Metro network and the demand of the properties will soon increase. Greater Noida will be the next best location after Gurgaon but will be developed with better, planned infrastructure and facilities.
FNG(Faridabad-Noida-Ghaziabad) Expressway: FNG expressway, due to many land disputes between the UP governemnt and the Delhi government was stalled. But the much awaited project is coming back on track and will provide fast connectivity to daily commuters of the area. This will be a relief to many people who are travelling to Fardabad and Noida. This stretch will become a boon for the real estate situation in four major cities namely Noida, Faridabad, Ghaziabad and Greater Noida. It is expected attract a major portion of the real estate development which is happenning in Gurgaon. FNG Expressway is around 56km long with 19.9km in Noida-Greater Noida region, 8km in Ghaziabad, while the rest 28.1km is in the Faridabad region, especially the developing sectors of Neharpar. The forthcoming FNG Expressway is also talked about as G-FNG (Gurgaon-Faridabad-Noida-Ghaziabad Expressway), as it will directly connect all the five regions -Ghaziabad, Noida-Greater Noida, Gurgaon, and Faridabad-providing fast connectivity to commuters across the stretch. There is a joint proposal from Greater Noida and Faridabad authorities to connect both the regions through the Yamuna bridge, at an estimated of cost of Rs 300 crore.
Yamuna Expressway: The 6-lane 165 km long expressway which connects Greater Noida to Agra played a huge role in the terms of connectivity and ease of access to Delhi and Agra. Greater Noida being one end of the expressway enjoys the benefits of demand increase in the terms of industrial land, residential land and commercial land. As Yamuna expressway is meant to be developed as an industrial belt, the demand of housing is going te be multiplied. Major effect of this industrialisation is going to happen on Greater Noida. It is expected that by 2021, Yamuna expressway will be connected by metro to the inner parts of NCR, thus making it accessible for middle-income class group along with its affordability character. Physical Infrstructure: Greater Noida is emerging as a realty hotspot for commercial and residential properties, even as the GNIDA pulls out all stops in helping create a world-class city with planned infrastructural development.
The residential and commercial policies of Greater Noida Industrial Development Authority (GNIDA) have directly encouraged a slew of developmental activities in the area. With top-notch infrastructural facilities in place, the place is considered one of the best destinations yet in the NCR.
5 Some of the top social and physical infrastructure in Greater Noida: • Forthcoming night safari park • Transportion hub • Industrial and commercial zones of DMIC (Delhi Mumbai Industrial Corridor) • Gautam Buddha University (already functional) • Formula One race circuit or Buddha International Circuit • Direct access to the 165km-long Yamuna Expressway According to sources, for the year 2014-15, the authority allotted a total budget of Rs 9,200 crore for Noida. Greater Noida is likely to spend Rs 7,100 crore, while more than Rs 3,000 crore could be allocated by Yamuna Expressway Industrial Development Authority (YEIDA). The authorities are also planning to expedite several key infrastructural projects in 2014.
With an aim to develop Noida as a major infrastructural hub, on par with all the major cities in the country, the authority plans to allot 50% for various development projects in the area. It will spend about Rs 5,000 crore for construction of roads, flyovers to resolve traffic bottlenecks problem in Noida and to build a major link road between Noida and Delhi.
The money will also be spent to provide basic services which include healthcare, power, transport and a riverfront corridor along the Yamuna and Hindon rivers to address the land encroachment problem.
6 SWOT Analysis Strengths Weakness Grid-Iron sytem which is being followed in Even though the plans to develop the Noida, Noida Extension, Ghaziabad, connectivity are happenning, its distance from Faridabad etc is proposed here also in Delhi in comparison to other competitive cities Greater Noida. still lies as a hurdle Regional level landuses such as institutional uses, industrial uses, SEZs are placed at the The price appreciations which happened in periphery of the city so that the frieght Gurgaon for various reasons is not going to traffic will not interrupt the inner roads. happen for short-term or mid-term period The commercial development is still lagging Commercial areas are distributed evenly behind even though it has been proposed to be with a hierarchy in the residential areas. developed in Master-plan 130 m wide Noida-Greater Noida expressway is proposed connecting the linear city from north to south and also connects to Noida and Delhi. 165 m long Yamuna Expressway which connecting Delhi and Agra being located adjacent to Noida-Greater Noida expressway is majorly responsible for the rise in demand of industrial land in Greater Noida Oppurtunities Threats Three new industrial projects will be developed in Greater Noida- Integrated Faridabad, Manesar and Ghaziabad are the major Industrial Township, Model transport hub competitors in the real estate sector and are also in and a Multi-modal logistic hub. the market from long time. There is a plan to develop 60km fast Metro Currently according to CommonFloor.com data, connecting IGI airport under 50 minutes the supply is more than demand which may not from Greater Noida passing result in good price appreciation The first phase of Metro work of 29.7Km will start soon and will gain momentum. Out of the cities developed around Delhi, Greater Noida is the only city which is being developed with more than 15% of green cover which will keep it environmentally superior to other competitive cities. 56Km FNG(Faridabad-Noida Ghaziabad) expressway with 19.9km of the stretch in Noida-Greater Noida region once completed will help in increasing the residential real estate demand. With an aim to develop Noida as a major infrastructural hub, on a par with all the major cities in the country, the authority plans to allot 50% for various development projects in the area. It will spend about Rs 5,000 crore for construction of roads, flyovers to resolve traffic bottlenecks problem in Noida and to build a major link road between Noida and Delhi.
7 Residential Market Analysis:
Supply and Absorption:
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Figure 2: Yearly supply and absorption Source: Real insights by Commonfloor
The above figure shows the supply and absorption of housing units in Greater Noida from the year 2010 to 2014. It is clearly visible that the supply is more than the demand. This can be a good sign considering the future requirements, but the price appreciation will be slow. In the years 2001 and first two quarters of 2012, the supply has been reduced by half of the previous years. The major cause can the delay in the infrastructure projects caused. Due to that decrease in supply, even though the supply increased in later stages, there was no substantial increase in the absorption. It is expected that in the year 2014-15 the momentum of absorption will be regained.
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Figure 3: Area wise housing units supply Source: Real insights by Commonfloor
From the above figure it is evident that about 25% of the projects are being developed along Yamuna Expressway. The major cause can be the industrial projects along the area and the affordable land available. Many developers prefer this because of its connectivity to both Agra and Delhi. Noida Extension located along Noida-Greater Noida Expressway is the second most preferred location for development of projects. But it loses to the affordable situation of Yamuna Expressway which makes it less-preferred by the developers. Noida Extension will continue to serve as a region level commercial centre with the facilities available.
9 Market Segmentation:
Figure 4: Market segmentation in terms of typology and price Source: Real insights by Commonfloor
From the above figure the market segmentation based on the typology and ticket size can be analysed. About 50% of the projects are in 2 bhk segement of which more than 80% come under affordable segment. More than 30% of properties are available in 3 bhk segment in which about 65% is in mid-range segment. Properties with price range above 120L is only 2% in 3 bhk segment. There is a steep fall in the affordable range from 2 bhk to 3 bhk falling from 82% to 20%. Luxury properties are available only in 4 bhk units. If we look at the over-all price range of the projects there is less than 5 % of proerties available which have price over 120L.
10 Figure 5: Market segmentation in terms of price and size Source: Real insights by Commonfloor
The properties which are in the ultra luxury segment is only 1%. More than 50% of the properties are in affordable segment. Of the affordable properties, more than 70% come under the size range of 700-1200 sq ft. This shows that the affordable properties are not small in size, but are reasonably comfortable. In the mid-range segment, about 70 % of the properties come under the size range of 1200-1800 sq ft.
11 Rental Yield:
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Figure 6: Rental yield for each typology Source: Real insights by Commonfloor
It is observed that the rental yield is highest for 2 BHK properties. In comparison to 3 BHK and 4 BHK rental yield, the 2 bhk rental yield is more than double. This shows that for long term investment pupose, who look for good rental yield can prefer to take 2 bhk apartments.
Conclusions: • GNIDA (Greater Noida Industrial Development Authority) envisages to develop Greater Noida as an industrial city to cater the industrial needs of NCR with a perspective of including it as a prominent region in eastern and western industrial corridors. • Regional plan of NCR has identified Greater Noida as 'Metro Centre' which stands top in the six-level hierachical system of development. This had an impact making it one of the most preferred investment regions in NCR. • Even though the connectivity had a boost due to various infrastructure development, there has not been substantial increase in the prices over the years when compared to Gurgaon. • Greater Noida has been planned in such a way so that, while serving the purpose of industrial city, it also has efficiently planned infrastructure making it self-sustainable in the terms of residential use. This can also be explained by the location of industrial and commercial estates proposed in the Master plan. • NCR has witnessed a lot of haphazard development which made it environmentally unsustainable, but during the planning and development of Greater Noida, the
12 environmental aspect has been given a huge preference considering the fact that more than 20% of land was allocated for environmental use and proposals have been made to keep the environmentally sensitive areas uninterfered. • Three industrial projects which are planned along the DMIDC freight corridor has also helped in the development if infrastructure projects. • It is expected that by 2021 Greater Noida will be connected by 29.1 km long metro making it more accessible to other parts of NCR. • 56 km FNG expressway, Noida-Greater Noida Expressway and Yamuna expressway are the three road infrastructure projects which made both commuter and freight movement more comfortable. • Certain region level facilities such as Formula 1 race circuit, Gautam Buddha university, Night Safari etc and the proposals worth Rs 7,100 crore physical infrastructure projects make it a world-class city. • It is observed that about 25% of the residential developement of Greater Noida is along the Yamuna expressway stretch where the land is available at most affordable prices. • 2 BHK and 3 BHK housing units are more in number with about 82% and 20% affordable properties respectively, makes it a destination for middle-income home seekers in NCR. • As per data with CommonFloor.com, affordable properties sized 700-1200 sq ft rules over the rest closely followed by mid-segment properties sized 1200-1800 sq ft. References: • Greater Noida Master plan 2021 • NCR Regional plan 2021 • http://www.tribuneindia.com/2014/20140111/real.htm#4
• http://www.commonfloor.com/guide/three-new-industrial-projects-in-greater-noida-37978.html
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• http://www.dailypioneer.com/business/tired-of-delays-customers-cast-doubt-over-premia-projects.html
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• http://www.commonfloor.com/guide/yamuna-expressway-master-plan-rekindles-hope-39535.html • • CommonFloor.com maxHeap Technologies Pvt Ltd #298,299 SGR Towers 7th Cross, Domlur, Bangalore - 560071. ------Authors Sannihith Tunuguntla Research Associate [email protected] Bangalore
Meha Singla Manager Research [email protected] Bangalore ------
Disclaimer: The document above is written by the Domain Research Team at Commonfloor.com, India’s fastest growing real estate website known for its unbiased prognosis in Real Estate sector. The information provided in this report is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps. It should be considered as a guideline and not in absolute certainty. While care has been taken for groundwork, no responsibility is accepted for the accuracy of whole or any part. This information is confidential and the sole property of CommonFloor.com. It should not be reproduced in any form, in part or whole, without prior permission.
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