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Mint Primer | New Noida city: Will it spur the NCR’s realty market?
Summary
- The Uttar Pradesh government’s approval last week to develop New Noida city is expected to spur real estate and infrastructure activity in the National Capital Region.
The Uttar Pradesh government’s approval last week to develop New Noida city, near Greater Noida, is expected to spur real estate and infrastructure activity in the National Capital Region (NCR). This could impact the overall NCR property market. Mint explains how:
What is the New Noida city plan?
‘New Noida’ is a new, planned city that will be developed in phases over 15 years, focusing on the Dadri-Noida-Ghaziabad region. The plan, to be carried out by Noida Authority, entails large-scale land purchases from nearby villages in Gautam Buddh Nagar and Bulandshahr districts.
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The state government has also approved a master plan, to be executed by the Yamuna Express-way Industrial Development Authority, which includes 55 villages in Bulandshahr. The New Noida city will house 600,000 people, and will be developed in four phases, with the first phase expected to be ready in four years.
What kind of activity is expected?
As per the plan, New Noida will have industrial and logistics hubs, homes, commercial office and retail projects, and hospitals. The focus is on building integrated industrial townships, with affordable housing as well as ample living facilities for industrial workers. The long-term plan also includes an Olympic City, as well as plans to develop a ‘Korean City’ and a ‘Japanese City’, which will be industrial hubs. These plans are expected to spur sharp growth in the Noida and Yamuna Expressway regions across different real estate asset classes, which would contribute to the overall economic development of Uttar Pradesh.
Where does the Jewar airport fit into the plans?
Noida International Airport in Jewar occupies a prominent place in the development. The airport, expected to be operational next April, is triggering real estate and industrial activity. Government agencies have big plans to acquire land near the airport. This has resulted in a surge in land prices that have tripled since 2018, when work on the airport started.
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How will it impact the NCR property market?
The airport and New Noida plans have already started pushing up land transactions and prices in Greater Noida and Yamuna Expressway. Noida property prices have shot up by 20-25% in the last two-three years. New Noida, experts say, will have the biggest impact on Greater Noida. With improved connectivity and infrastructure, the region will attract more capital. Office, retail and data centre activity, which has been inclined towards Noida and Gurugram, will spill over to Greater Noida.
When will New Noida become livable?
A few housing, hotel and retail projects are already underway in and around the region. Developers have started launching projects near the new airport, which are expected to be ready in three-four years. Real estate activity should pick up significantly once the Jewar airport opens next year. Jobs, economic activity and social infrastructure will fuel demand for real estate in New Noida. Last week, developers bought nine plots for ₹1,034 crore to develop premium housing projects near the airport, through an e-auction.
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