Residential resale property market in Noida is witnessing a boom as new buyers are entering the market and the existing buyers are selling to reinvest in areas like Yamuna Expressway. Experts highlight that Sectors such as 70, 71, 74, 78 and 79 have shown an upward trend in the resale market in the last six months. This is attributed to improved market sentiment, increased availability of options in the market, better connectivity and proposed metro line.
“In the phase when the project is close to offering possession, a decent number of investors are exiting the project and the inventory goes to the end user at that time. Many projects in Sectors 70, 71, 74 and 79 are witnessing resale as people want to book profits and exit to reinvest in developed areas of Noida,” says Aman Agarwal, Director of KV Developers.
In the initial phase, if both the consumer and investor ratio is well maintained, then the exit will happen easily. There is a positive sentiment in the resale market because of which resale values have increased in Sector 50 & Sector 51 also.
“In the next one year, we will be witnessing increased positive sentiment in both, fresh sale and resale market. The resale market will see the same price hike as the fresh sale market, with the lower range being around 10%,” adds Aman Agarwal.
Talking about buyers who are contributing to the sale segment in Sectors 70, 71, 74, 78 and 79, UC Pant, Legal Advisor, Pant Associates says, “low usable area is attributing to the sale.” Consumers want to exit from these sectors as the floor area ratio (FAR) provided is very less, however, the prices being offered are high. So, they are selling the projects they have invested in these sectors to purchase in the opposite side, Sector 50 & Sector 51 or Noida Expressway, where projects have slightly increased FAR.
A majority of the properties developed initially in Noida were owned with the purpose of investment and 70, 74, 78 and 79 sectors are some of them, says Vikas Gupta, Joint MD of Earth Infrastructures Ltd. The current slight movement is driven by the stagnation as well where investors are worried for their investment.
Gupta adds that the resale price increase varies on the basis of where the concerned property is located. “However, on an average we may expect 10-15 percent appreciation on reselling,” adds Gupta. Resale market in Noida is driven by the investors’ aspiration on their investments in the areas where reselling is taking place. Investments in these areas were done mostly for the returns and the current situation is just the next phase of the earlier happenings. It is also getting momentum due to stagnation in the Delhi – NCR property market.