Noida real estate market: property prices more than double in last five years

Once recognised for affordable and mid-segment properties, the twin cities of Noida and Greater Noida, have emerged as hotspots for premium real estate over the past five years. Real estate experts and available market data shows that property prices have doubled over the last five years in Noida and Greater Noida.

According to the data, weighted average prices of new launch housing projects have in 2024 surged in the Noida and Greater Noida regions by 152 percent and 121 percent respectively since 2019-2020 (pre-Covid period). Similarly, the price appreciation in Noida’s secondary housing market has also been significant at around 81 percent in the last five years.

Among other key micro markets of Delhi-NCR, the Noida region has emerged as a sought-after destination for high-end residential projects. The transformation of Noida’s realty market into a hotspot of luxury properties from the affordable segment is closely linked to the infrastructure upgrade, improved connectivity, increased economic activity and strong buyer sentiment.

Experts said that the pandemic catalysed significant changes, driving up demand for larger spaces, better amenities, and green surroundings. This shift in Noida has attracted premium and high-end developers from other regions to NCR, such as the Prestige Group, Godrej Properties, Sobha Limited, who are looking to cater to the evolved needs of the post-pandemic buyer.

Property price appreciation

According to PropEquity data, the weighted average price of newly launched projects in Noida have surged by around 152 percent to Rs 14,946 per square feet (psf) in 2024 (till September 2024) from Rs 5,910 psf in 2019 in pre-Covid times. The weighted average price of 2BHK new launches in Noida soared from Rs 5,712 psf in 2019 to Rs 16,000 psf till September 2024, a growth of around 180 percent. However, Noida has seen a very few new project launches offering 2BHK units in the last couple of years.

The average price of a 2BHK unit in a newly launched project in Greater Noida appreciated by 122 percent to Rs 7,849 psf in September 2024 from Rs 3,537 psf in 2019. Similarly, the average price of a 3BHK apartment in new project launches registered a growth of 134 percent as the prices rose to Rs 8,595 psf in September 2024 from Rs 3,673 psf in 2019.

Data shows that unsold housing inventory in Noida also dropped significantly to 4,745 units in September 2024 from 11,379 units in 2019. Similarly, in the same time period, in the Greater Noida region too, unsold inventory has gone down to 9,953 units in September 2024 from 30,924 units in 2019.

Similarly, the secondary real estate market in Noida too witnessed significant growth between 2019 and September 2024. According to data provided by Geetanjali Homestate, the average price of 2BHK units in Central Noida surged to Rs 8,150 psf in 2024 from Rs 4,500 psf while the growth for 3BHK units was 77 percent during the same time period as the prices increased to Rs 11,500 psf in 2024 from Rs 6,500 psf in 2019.

The average price of 2BHK units in the Noida-Greater Noida Expressway micro-market increased to Rs 7,900 psf in September 2024 from Rs 4,800 psf in 2019, a growth of 64 percent. Similarly, the average per square feet price of a 3BHK unit in this micro-market is now Rs 12,000 while it was Rs 7,200 in 2019, an appreciation of around 67 percent.

In Greater Noida West, the average price of 2BHK units have gone up to Rs 5,500 psf in 2024 from Rs 3,500 psf in 2019, a growth of 57 percent. In the secondary market, a 3BHK unit would cost Rs 8,800 psf in 2024 while it was Rs 5,800 psf, a hike of around 52 percent.

On the commercial front, the market has witnessed a robust increase in demand for office spaces, with tech giants and multinational corporations setting up bases in Noida.

“The presence of major players like Infosys, Microsoft, and Samsung in sectors along Noida-Greater Noida Expressway and Sector 62 has boosted office occupancy rates, pushing the commercial property market growth by about 40 percent in the past five years,” Vishal Raheja of InvestoXpert.com, a real estate consultancy firm, told Moneycontrol.

Driving factors

Experts said that in the past five years, Noida and Greater Noida have evolved from emerging markets to mature real estate hubs, because of a blend of strategic infrastructure projects and rising demand. The improved connectivity via expanded metro lines and expressways has also played a crucial role in the real estate boom in Noida.

Sunil Sisodiya of Geetanjali Homestate, said that before the pandemic, Noida and Greater Noida were primarily known for their affordable housing, wide roads, and planned infrastructure and demand was largely driven by the affordability factor and connectivity to Delhi NCR, as well as proximity to industrial hubs and IT parks.

“Noida and Greater Noida have witnessed a transformative journey from satellite towns to bustling urban centers, catering to both end-users and investors. Their growth reflects a unique blend of strategic development, infrastructure advancements, and the dynamic shifts brought by changing buyer preferences,” Sisodiya told Moneycontrol.

Sisodiya said that currently Central Noida and the Noida-Greater Noida Expressway are attracting upper-middle-class buyers due to their proximity to premium infrastructure projects, including the upcoming Jewar Airport and the Film City project.

Shiwang Suraj, Founder and Director of Gurugram-based property consulting firm InfraMantra said that Noida is no more a “poor cousin” of Gurugram.

“The increase in housing prices in the last five years and the rising habitation can be attributed to the growing interest by corporates and retailers for office and mall spaces respectively, infrastructure development, primarily the upcoming Noida International Airport, and shifting preference towards branded developers who not only charge for world-class amenities but also the safety & security of investment,” he said.

Future outlook

Raheja of InvestoXpert said that projects such as the Delhi-Mumbai Industrial Corridor (DMIC) and the anticipated Film City along Yamuna Expressway are further expected to position the region as a major entertainment and business hub, drawing even more commercial investments.

The Noida-Greater Noida Metro Aqua Line and plans for extending the metro further to Jewar Airport are anticipated to enhance the appeal of these cities.

“With over 100 new housing and commercial projects in various stages of development, Noida and Greater Noida offer immense potential for future growth. The region is set to see even greater growth, with an estimated 20 percent annual increase in new residential and commercial projects over the next few years, positioning Noida as a major real estate powerhouse in North India,” he said.