June 18, 2014

Delhi Metro and its impact on Noida’s real estate

Noida’s real estateMetro connectivity has always played a key role in terms of real estate. Wherever there is metro connectivity the real estate booms. The connectivity offered at affordable rates by metro is rivalled by no other system of mass transport.

The Delhi Metro has come as a great boon for properties in Noida. Currently Noida falls in the Blue Line. The Blue Line runs from Dwarka Sector 21 to Noida City Centre. Areas in Noida such as Sectors 15, 16 and 18 have prospered because of the connectivity offered by the metro. Flats in Noida located in these sectors are sought after as the Delhi Metro connects these areas to the Central Business Districts in Delhi such as Connaught Place and Rajiv Chowk. Noida is also connected to an upcoming residential locality, Vaishali through the metro.

Many office goers depend on the Delhi Metro to ease their commute. It serves as a lifeline for them. Many multinationals shy away from setting up shop where metro connectivity is lacking. They would rather move to a peripheral area which has more connectivity and where land prices are less as well than stay in the central business districts.

Those who are working in Delhi but are not able to afford the asking price to stay there flock to purchase properties in Noida. The metro has also encouraged the retail spaces to flourish in Noida. This is especially true of Sector 18 which has malls like the Great India Place, the Mall of India, Atta Market and Garden Galleria. These malls are very active as families are able to commute to this area as the metro station is present there.

Noida’s Properties

Metro connectivity leads to a gradual price appreciation for properties which experience this connectivity. This appreciation might not happen overnight, but will happen in a phased manner. The properties appreciate by about 20 to 30 percent. This is especially true of properties which are located within the 2 kms radius from a metro station. Not only do the property rates go up, the rentals garnered from here will also increase. Hence flats in Noida which fulfil these requirements are good choices for both end users and investors.

The Delhi Metro is set for expansion under the 3rd phase. The Blue Line which covers Noida is set to be extended. This extension will begin from Noida City Center to Sector 62. There will be 6 stations under this extension. The number of interchangeable hubs will increase once Phase III is completed by 2016. This is set to drastically reduce the distance that the commuter has to travel. So much so that the travel time between Noida and Gurgaon will come down by 30 minutes.

Recently, the central government has also approved a metro link from Noida to Greater Noida. A total of 22 stations has been planned for this route. Sectors 50, 51, 78, 101, 81, 83, 85, 137, 142, 143, 144, 147, 149 and 153 are set to have these stations. Once the project is completed property rates in all these sectors will go through the roof.