NOIDA Residential Property Market Overview -May 2015
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Transcript of NOIDA Residential Property Market Overview -May 2015
Cautious sentiments prevailed in NOIDA residential
market during 1Q 2015. Due to National Green Tribunal
(NGT) order several completed projects awaiting
occupation certificate from authority. The NGT order
forbid the authorities from providing occupation certificate,
a prerequisite for registering properties falling within the
eco-sensitive zone around the Okhla Bird Sanctuary.
NOIDA Expressway is the area which is severally
impacted by this order.
Not only the existing project but new launches have also
been impacted due to ongoing NGT issue and low sales
volumes thus, only a handful of new projects were
launched in 1Q 2015. Project launched during the quarter
were “'M Collection' by Mahagun Developer at Sector
128. This project is priced at INR 4,700 per sq ft. Apart
from this, two projects were launched in Greater NOIDA
West were “Grand Avenue” by Samridhi Developer and
“Golf Avenue” by Apex Buildcon, both of the projects
were priced in the range of INR 3,400 – 3,450 per sq ft.
and expected to get completed by 2018.
Projects completed this quarter include “Silicon City” by
Amrapali Group, “Orchid” by JM Group both located in
Sector 76 and Supertech Ltd. township project
Market Indicators
Relative to prior period 2014 2014 2015 2015F
Market Q3 Market Q4 Market Q1 Market Q2
CAPITAL RATE
NEW PROJECTS
CONSTRUCTION
RENTAL RATE
MICRO MARKETS CAPITAL VALUES
(INR PSF)
% CHANGE
QoQ YoY
Market Trends
NOIDA | RESIDENTIAL
“Capetown” located at sector 74. These projects were
currently priced in the range of INR 4,400 – 5,600 per sq
ft.
Capital values in 1Q 2015 rose averagely by 1% QoQ in
Sectors like 70 to 78, 100 to 110, 50, 28, 29 and 30.
Capital values in all other markets remained status quo.
In an exclusive order the Uttar Pradesh government has
approved a mixed land use policy for NOIDA that will
allow owners of residential and industrial properties to
use them for other purposes. By paying conversion
charges the mixed land use will be allowed on 25% of the
permissible FAR on the ground floor of industrial plots.
Guest houses and bank activities will be permitted on all
floors up to the permissible FAR on residential plots.
With this policy it will certainly promote the compact land
use where a building or a single site will have all
necessary facilities like offices, health centre, guesthouse
and banks within the boundary.
Colliers View
Both buyers and developers will continue to remain
cautious. As NGT issue is expected to resolved in
coming quarters several developers are expected to
offer the possession in their completed projects. This
supply addition will keep rents under pressure specially
along NOIDA expressway. As ready to move in
apartment is in demand from end-users, capital values
is expected to increase marginally.
Copyright © 2015 Colliers International.
The information contained herein has been obtained from sources deemed
reliable. While every reasonable effort has been made to ensure its accuracy, we
cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are
encouraged to consult their professional advisors prior to acting on any of the
material contained in this report.
Colliers International (India)
Property Services Pvt. Ltd.
Technopolis Building, 1st Floor,
DLF Golf Course Road, Sector 54
TEL +91 124 456 7500
Average Capital Value Trends
Source: Colliers International India Research
Average Rental Values
Source: Colliers International India Research
Senior Manager
Residential Services| Gurgaon
National Director
Residential Services
Manager
Research Services
National Director
Valuation & Advisory
Services and Research
Director
Residential Services| India
Associate Director
Research Services