Escape to luxury: Why housing is taking a premium leap in Noida

NOIDA: How about some indulgence to snap out of a long phase of grief?
A real estate market mired for years in a flux of complicated legal battles – of which the razing of the twin towers has become a symbol – prolonged delays and problems precipitated by realtors swallowing much more than they could chew is suddenly witnessing a glut of luxury housing, starting at Rs 1.5-2 crore at the lower end of the spectrum and swinging to Rs 30 crore at the other end.
And there’s choice, depending on what fascinates you enough to write out that fat cheque – like a riverview penthouse on top of a skyscraper, an apartment that can be operated with smartphones – fans to doors – a condominium with a lavish clubhouse and a leafy sundeck running around a swimming pool, a balcony with a tree, a complex with sports, yoga and meditation zones, or an entire floor to yourself.
Most of these premium projects are coming up on either side of the Noida Expressway, in sectors like 94, 124, 128, 144, 150, 151 and 152.
There are several reasons why a limping sector is making a dash for the luxury corner. Sales of luxury or premium housing units have been trending higher in large Indian cities since the pandemic, which appears to have convinced more to bring forward their aspirational goals than wait for a future that’s afar.
Secondly, Noida’s real estate problems, though still in multiple legal forums like the NCLT and Supreme Court and affecting thousands of homebuyers, are legacy ones that mostly affect projects launched between 2006 and 2014.
The most important factor is the airport, which has created a runway for big investment and given a fillip to corporate investment in the city, in turn bringing in a new working population. This has, real estate watchers say, created demand for housing that meets the ambitions and desires of a city with an expanding urban geography and a changing demography.
The city now has a bouquet of premium offerings for those who can afford it. Among projects that have been launched are County 107, Kalpataru Vista, ATS Knightsbridge, Gulshan Dynasty, Ambience Tiverton, Ace Starlit and Parkway, Mahagun Medalleo and Godrej Nest.
Realtors and analysts say low interest rates on housing loans after the pandemic struck played a significant role in pushing demand for larger homes that could accommodate a family working, studying, performing or chatting online without getting into each other’s faces. Luxury came with the higher price band. Interest rates have risen since, but demand has not diminished, says Amit Modi, director of County Group.
“Those who are looking for high-end apartments living are mainly from the business class and corporates. But even the middle class has become more aspirational,” says Sanjay Sharma, director of SKA India, explaining the rise in demand for houses priced in the Rs 1.5-crore range.
According to Anarock research, of the total housing sales of 63,710 units that the NCR saw in 2022, luxury housing had a 15% share, up sharply from 3% in 2019. Of the 25,360 units launched in NCR in 2022, 27% were in the luxury category (Rs 1.5 crore+). In 2019, this band had a 12% share in new launches.
Making sense for realtors
Since premium housing projects command higher prices, and consequently, offer much bigger profit margins, the economics of it work out well for real estate companies that have been facing years of turbulence and have seen their debts to the Noida Authority soar because of payment defaults over the years.
Construction cost for luxury projects is higher but developers can cash in through bespoke offerings, top loading a project with add-ons and charging a premium for each. Ankush Kaul, chief business officer of Ambience Group, says, “The luxury real estate market in Noida has seen a growth in demand, with buyers seeking homes that offer world-class amenities, excellent connectivity, and an unparalleled lifestyle.”
Proximity to the metro corridor, major corporate hubs that have already been established or will be soon and expressway connectivity with the upcoming Noida International Airport are the major selling points for upscale projects.
Mohit Arora, managing director, Supertech, says the company has started offering possession till the 42nd floor in Spira at Supernova, which has three more towers – Nova East and West, and Astralis. “Spira is almost 80% complete and will be fully delivered in December 2024. The flat sizes are in the range of 3,000 sqft to 4,500 sqft while penthouses measure 5,000 sqft to 20,000 sqft. The price of the costliest unit is Rs 30 crore. It’s a 20000 sqft penthouse.”
County Group’s Modi says it’s the airport that has been the main gamechanger for Noida. “Noida is the next big thing. Gurgaon became a big deal because of the (IGI) airport. The perception of Noida has changed with big-ticket infrastructure projects. It has had a cascading effect. Companies will come when there is infrastructure. That will bring the clientele,” he says.
Sadiq Din, city head (Noida), of Anarock, says a central location is no longer seen as a prerequisite for a premium project, diversifying their availability. “Today, luxury homes can be in a city’s periphery as well. More than location, it’s the size and amenities that determine the luxury tag,” he says.