In the minds of
many consumers, considering whether to buy
flats in Noida or whether to buy flats in Greater Noida is no longer a
difficult question to answer. Both the real estate markets, Greater Noida and
Noida, differ from each other in well understood and easily quantifiable ways.
Differences
Between Noida and G. Noida
Despite the
fact that Noida and Greater Noida are neighbours or rather lie adjacent to one
another, the property markets in both cities are quite distinct and cater to
different kinds of buyers. Such differences are brought to the fore when one
considers the rental market in these adjoining cities.
Households that
had invested in one of the numerous residential
projects in Noida are likely to have been disappointed by the low rise
or in some cases even negative rental returns from their property. Conversely,
households who had invested in a project in Greater Noida were likely to have
gained a handsome rental yield of nearly six percent on their property.
Why The
Disparity Between Greater Noida and Noida?
The simple
reason for the disparity in rental earnings between the two cities is simply
because rental rates in Noida have nowhere to go but down since rental rates
here had risen so drastically over the past few years. On the other hand, the
rental rates in Greater Noida are far less exorbitantly priced and hence have
sufficient room for upward movement earning owners of properties in Greater
Noida a higher rental income over the next few years than they had earned in
the past
Homebuyers who
bought a property from real
estate developers in Noida a few years ago would be able to rent out
the property at a price of nearly fourteen rupees per square foot whereas
properties in Greater Noida that were bought from real estate developers could
be only be rented out for nine rupees per square foot today. Thus there is
sufficient room for the rental price to rise per square foot in Greater Noida
just as there are numerous price points to which rental prices could fall
concerning property in Noida.
Further Reasons
for the Rental Disparity
One reason why
property in Noida commands a higher premium than does property in Greater Noida
is simply because Noida has better infrastructure than does Greater Noida.
Additionally, Greater Noida is a young city and has yet to mature in terms of
civic and social infrastructure whereas real
estate in Noida benefits from Noida’s older vintage.
No comments:
Post a Comment