The number of millionaires in the country is on a rise. The Kotak Wealth report released in July 2014 shows that the number of ultra high networth individuals (UNHIs) rose by 16 per cent from 1,00,900 in 2012-13 to 1,17,000 in 2013-14, while their net worth rose by 21 per cent from Rs 86 trillion to Rs 104 trillion in the same period. While the housing needs of such individuals will have to be catered to, a share of that seems to be coming to Noida even though it has been known more for its residential offerings to the middle class. Noida is slowly but surely rising in stature and developers are beginning to raise their stakes and building residential properties in the super luxury segment priced at over Rs 10 crore.
Over the last few months, developers in Noida have launched at least three such projects, the latest offering being the Belleville Park in Sector 25 where home buyers will have to shell out a minimum of Rs 10 crore to own a house out of the 100 odd villas that Wave Infratech plans to build on the 52-acre land.
Even 3C tied up with Four Seasons Hotels and Resorts and launched its luxury residential apartments in the price range between Rs 7 crore and Rs 14 crore.
Earlier Supertech launched its Supernova project in Sector 94 in Noida where the apartments in its tallest tower ‘Spira’ having 80 floors where there are 100 premium apartments priced between Rs 5 crore and Rs 7 crore.
The Brys Group too launched its 81 storeyed project Brys Buzz in Sector 150 in Noida a few months back. While the project will have a total of 291 apartments they would be priced between Rs 3.75 crore and Rs 18 crore, depending upon the size of the apartment.
Unitech’s Golf and Country Club residential project situated on Noida Expressway that was launched in 2007 priced between Rs 2 crore to 5 crore is one of the earliest projects in the segment.
These projects open up a sharp contrast to the residential offerings of Noida till date. Over the last 5-10 years, people in the National Capital Region with modest budgets were attracted towards Noida – Noida Extension and Noida Expressway — because of its affordability and presence of adequate infrastructure but that seems to be changing now.
In aggregate these super luxury projects are expected to deliver around 800-1,000 apartments/houses over the next 3-5 years.
Why this rush for luxury projects?
The developers building houses for the rich in Noida feel that there is a budding demand for such projects in Noida as the mix and demography of people looking to stay in Noida is changing. Developers feel that earlier people were scared to come to Noida as there was little development but now this has changed and the perception of Noida has also changed.
“While Delhi has issues of land availability, people see Noida as a true extension of Delhi,” said Amar Sinha, ED, Wave Infratech.
A big change has emerged because of several corporates setting up their offices in Noida over the last few years and with growth of commercial setup in the city, there has been a rise in the residential demand for such projects.
“Corporate movement in Noida is happening in a big way and that is driving the demand for such segment. While there is an issue of perception about Noida, it is changing slowly. There is a shift in the population mix in Noida and people with better income levels are also moving in,” said Sinha.
There are others who agree to this. “Noida, which is also called as industrial hub of India has recently seen a boom in both commercial and residential spaces. With the setting up of these corporates, MNCs, ITeS and industries, people prefer to buy their own home within the vicinity of Noida,” said RK Arora, CMD, Supertech Limited.
While the demand for such projects is relatively new, developers feel that growth here is more sustainable.
“Noida’s luxury quotient has just started taking shape and the growth is more sustainable than any other luxury market like Mumbai or Gurgaon since the physical infrastructure is much better than any other city on luxury map. Undoubtedly, it has become a preferred destination with huge appreciation potential compared to the saturated markets of Gurgaon,” said Rahul Gaur, CMD, Brys Group.
Is there an oversupply?
While around 1,000 apartments /houses are expected to come up in the market over the next 3-5 years in this segment, is there a risk of oversupply and are the developers overdoing projects? Experts feel that there may be an oversupply situation in the market but that will depend upon the project and its location.
“Earlier for projects of Rs 5 crore and above buyers would say that they will go and buy in Gurgaon, but that has changed now and we have closed several deals for such apartments ranging between Rs 7 crore – Rs 14 crore in Noida,” said Om Ahuja, CEO-Residential Services, Jones Lang LaSalle India.
Even the developers say that they have got a good response for their projects. While Wave Infratech said that it has already sold majority of the flats in the 51 villas on offer in the first phase at Belleville Park within a couple of weeks, Brys Group said that it has sold 100 apartments of the 291 apartments/villas in the Bryz Buzz. At Supernova Spira too Supertech has sold almost 30 per cent of the 100 premium apartments.
“There is a definite demand for the segment in Noida but right projects at right price points will attract buyers,” said Ahuja