The region of Noida, which is situated close to Delhi and spread across 1400 sq km, will continue to be one of the most favored investment markets in India, not just for big investors and corporates but also retail investors, HNIs, and smaller business owners, among others.
Once believed to be an industrial suburb of New Delhi, Noida, its adjacent extension, and the Greater Noida region have grown steadily to become a top-notch investment hub. From 2016 to 2021, Noida has been party to an investment of INR 64,000 crore, creating around 4,50,000 jobs. It is one of the most prosperous regions in Uttar Pradesh with an average household income of INR 6,71,000. The overall population of the city is a little less than a million.
An Upbeat Job Market
The underlying strength of Noida rests in its vibrant job market. Noida’s job market is not just robust but also far from homogenous. There is a good mix of large IT tech giants (TCS, Google, MS, Sapient, Accenture, etc.) as well as start-ups (Paytm, Redhat, etc.). There are plenty of research, consulting, and analytics companies as well.
The state government of UP has also invested generously and undertaken smart marketing to transform the Noida region into a prolific manufacturing cluster. Already, Noida has become one of the biggest smartphone contract manufacturing hubs in India. The state government is also investing in developing other dedicated business clusters such as an electronic park, medical device manufacturing park, textile business park, handicraft park, etc. to build manufacturing capacity, develop the overall ecosystem, and foster growth in ancillary industries.
Noida is also becoming a major data center hub in India. In the past, Adani Group has invested INR 4600 crore. Recently, a few weeks back, Singapore-based SLG group also pledged more than INR 7000 crore to develop data centers in the city.
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A Retail Haven
Noida and its adjoining regions are transforming into retail havens, backed by young demographics, an expansive job market, and an overall improvement in the liveability index. The region boasts numerous popular malls, high streets, shopping centers, multiplexes, restaurants, pubs, & nightclubs. Ikea is investing close to INR 5500 crores over a period of 7 years in Noida which will include, retail malls, warehouses, service centers, etc.
Major international retail brands, lifestyle fashion enterprises, footwear brands & personal care brands are expanding their showrooms and overall retail presence in Noida.
Noida is also conveniently linked with Agra, Meerut, and other towns in western UP. This makes Noida a favorite retail destination amongst the populace in these towns as well.
Jewar Airport – A Potent Game Changer
The Noida International Airport (NIA), which is also called Jewar Airport, is situated along the Yamuna Expressway. This will be the game changer for the Greater Noida and the Yamuna Expressway region. The overall project cost is close to INR 34,000 crore and once completed, it will be the largest airport in India. The first phase of the airport will be completed in 2024 and will start handling 12 million passengers yearly.
YEIDA or Yamuna Expressway Industrial Development Agency has been appointed as a nodal agency to systematically develop real estate, tourism, and manufacturing activities in the region. A 700-acre electronic park will be developed near the airport site to boost electronic appliance manufacturing, OEMs, etc. Likewise, a 350-acre medical device manufacturing park has been proposed, for which talks with various MNCs & OEMs are already in advanced stages.
As soon as the airport project kickstarts, a slew of new malls, 5-star hotels, high street outlets, multiplexes, and office projects will also start in the vicinity, giving the Yamuna Expressway a much-needed facelift. The governing agencies have also approved the proposal to add two more lanes to the Yamuna Expressway, which will enhance its economic significance.
An Evergreen Investors’ Paradise
Since the 90s, when Noida shot to prominence, it has always been favored by investors. The investor appetite stems from attractive appreciation potential and strong demand for the Noida market. Not just NCR, but NRIs and investors from other parts of North India such as Lucknow, Kanpur, Agra, Patna, etc. have shown great interest in Noida’s realty sector.
Fast forward 30 years and Noida continues to be an investor-friendly market with strong potential across retail, housing, and commercial real estate. After the pandemic, the markets have opened up now and real estate is on an upswing. As the markets are reviving, Noida is at the forefront marked by healthy demand and supply, new pipelines of products, soaring end-user confidence, and a pick-up in investor interest. Apart from residential assets and office spaces, investors are also mulling buying other alternative asset classes such as high street, farmhouses, vacation homes, shop spaces, hotel projects, and industrial real estate. As Noida continues to gain momentum, investors will continue to pivot to Noida and the Yamuna Expressway markets.
(By Ankit Kansal, Founder & MD, Axon Developers)
