Noida is at the cusp of being a retail hotspot for the coming decades, with the city expanding its limits and opportunities galore for shopping centre development and lifestyle retail
New Delhi: Noida has been a hotspot for real estate development, with several ongoing and upcoming projects contributing to its growth as an attractive investment destination. Real estate developers with the likes of Godrej Properties, ABA Corp, Gaurs, Bhutani Infra, Gulshan Homz, Prateek, Eldeco and Mahagun have launched residential, commercial, and mixed-use projects in response to the demand for modern and well-planned spaces.
Demand for homes in Noida has been steadily increasing leading to a spike in rentals. The average home rents in Noida as per property consultancy Anarock, surged the most, followed by Pune and certain areas in Bengaluru. The rentals surged by a whopping 23% between 2019 and end-2022. While at the end of 2019, the average rent for a 1,000 sq. ft. apartment in the area stood at 15,500 per month, it surged to 19,000 per month by
end-2022.
In 2023, property prices in Noida rose by 21.6% while rents increased by 13%, found Magicbricks Research. This is the highest rental growth in all localities of Greater Noida.
More Development on the Cards
During the UP-Investment Summit 2023, the UP government inked a total of 18,643 Memorandum of Understanding (MoUs) signifying investment intentions, amounting to 33.50 lakh crore. Out of which, Gautam Budh Nagar (Noida) secured the lion’s share with 27%, equivalent to 7.85 lakh crore, among the districts.
In addition to that, the Industrial Development Authority and Noida Authority have approved the Master Plan-2041, envisioning the creation of a new city adjacent to Noida, named New Noida.
This initiative is poised to profoundly impact the fortunes of 84 villages in Dadri and Bulandshahr regions, which will open the door to more real estate infrastructural developments.
Spanning an extensive 20,000 hectares, the proposed New Noida has been meticulously planned with a primary emphasis on industrial development. The master plan allocates specific areas for various purposes, including industrial zones covering 41 designated areas.
Residential spaces are earmarked at 11.5%, green and recreational spaces at 17%, road infrastructure at 15.5%, institutional areas at 9%, and commercial properties at 4.5%, outlining a comprehensive and strategic approach to the city’s development.
Proposed Airport
The new upcoming airport at Jewar has become an epicentre of growth in Delhi NCR that plays a pivotal role in attracting investors to Noida and Greater Noida. The airport is slated to have direct connectivity through metro, high-speed rapid rail, and road networks.
The increased footfall of travellers and the growth of the airport community will also drive the demand for retail and commercial developments.
“The airport at Jewar is going to be a real game changer as it is going to add more value to this scale of infrastructure,” said Ashutosh Kr Kashyap, Head – Real Estate, Noida International Airport at the Shopping Centres Next Forum 2023 organised by IMAGES Group.
According to him, the airport will make Noida a more feasible option for the Grade A developers for investment. With a lot of spaces available for stay, it will also stir up the residential housing market in the city.
The government is also planning an entirely new city, along the lines of Noida and Greater Noida, which is expected to shoot the residing population in the coming years. Once developed, it will be a contiguous urban area and by 2041 as per plans, it might have a population of about one crore. The proposed high-speed rail corridor between Delhi-Varanasi will also have Noida as its first stop.
Retail Real Estate Heating Up
Noida already has the presence of some of the most popular shopping centres in India such as DLF Mall of India. Other shopping malls in the city include Logix City Centre Mall, Garden Galleria and The Great India Place.
Gaur City Mall, the part of the larger Gaur City, a prominent residential and commercial development located in Greater Noida West (formerly known as Noida Extension), is another popular shopping destination.
“The current Grade A mall supply is just 5,00, 000 sq. ft. and with so many developing opportunities coming up, this space is going to increase in a few years,” added Kashyap.
What Makes Noida Unique
Several factors contribute to Noida’s rising prominence. Its proximity to the national capital, New Delhi, and other major cities in the National Capital Region (NCR), makes it
an attractive destination for real estate development. Its connectivity to key highways and expressways enhances accessibility. Its good infrastructure gives it an edge over its closest competitor Gurugram.
Noida’s inclusion in the Smart City mission leads to the development of smart infrastructure and sustainable projects. Investors interested in futuristic and technologically advanced developments may find opportunities in such projects. Areas witnessing significant infrastructure development, such as new metro lines, highways, and bridges, are attracting new retail estate investments. These developments also are enhancing connectivity and property values.
“Noida has been at the forefront of development for the last decade, and now the time has come that it becomes the epicentre fuelling Northern India’s economic growth, and people all across the regions start talking about it,” said Salil Kumar, Director, Sales & Marketing,
CRC adding that it has modern infrastructure, well-designed roads, a green environment (with parks and trees), and universities, colleges, retail and entertainment amenities. It is a modern living system, that evolved with careful planning.
“We have almost 4-5% of organised retail infrastructure at this moment. In a city like Noida, which has a population of 90% educated people, working in IT firms makes it a huge prospect for organised retail. With more hospitality and entertainment projects coming up, Noida’s potential is most bright and will be a role model for the entire India,” Kumar added.
Strategic Connectivity
The expressways in Noida have played a pivotal role in catalysing infrastructure growth in the region. These well-designed and efficiently managed expressways have become
the backbone of connectivity, fostering economic development and urban expansion.
One of the notable expressways is the Noida-Greater Noida Expressway, which reduced travel time and spurred infrastructural advancements along its route with several residential and commercial projects coming up. This, in turn, has contributed to the overall growth of the city, creating a vibrant and dynamic urban landscape.
Additionally, the expressway has facilitated the establishment of industrial and business hubs, attracting investments and creating employment opportunities. The enhanced connectivity has made Noida an attractive destination for businesses, leading to the development of corporate parks, office spaces, and commercial complexes.
Some of the major speedways passing through the New Noida area are the Eastern Peripheral Expressway, NH-91 (GT Road), and Ghaziabad-Kanpur Expressway. Apart from the Northern Railway line, the eastern and western freight corridors are also being
planned in the area.
The Right Mix
What distinguishes Noida from most other cities is planning and zoning. “Noida is at the right cusp. If you look at an early mover in Noida, it would be a DINK (Double Income,
No Kids) family. This category now wants to spend on entertaining itself. Noida having the 4Fs in the form of food-tainment, fun-tainment, fashion-tainment and film-tainment, creates the right destination for them,” said Pramod Arora, Chief Growth & Strategy Officer, PVR.
“We launched Superplex, at Logix City Center, Noida in 2016, which included IMAX, 4-DX, Atmos, Gold Class and Playhouse- all under one roof for the very first time in India. It did wonderful business for us and then with the Mall of India Superplex, the experience level has gone up,” he added further.
“Entertainment is gaining momentum in this country. The launch of the new format of Fun City at Mall of India is one example. Malls in Noida are offering the right kind of infrastructure for developers. With many universities and the new-age offices coming up in Noida and Greater Noida, the percentage of youth will go up,” said Raghu Rajagopalan, President – Group BD, Lifestyle Int at the shopping Centres Next Forum panel.
