The plant set up by Maruti Suzuki in Gurgaon did wonders when it came to boosting the real estate sector in the city and prices of commercial real estate. In recent times, Prime Minister Narendra Modi has inaugurated the Samsung India Electronics’ new manufacturing plant for mobile phones with Moon Jae-in, the South Korean President. The plant is located at Sector 81 in Noida. This plant is expected to spur demand for commercial property in the entire stretch and surrounding locations amongst leading corporates, manufacturers and other employers. This will in turn boost employment generation, creating demand for residential real estate in Noida. Commercial real estate prices may also witness appreciation along the Noida-Greater Noida stretch up to the Yamuna Expressway.
The direct impact will be the pull towards establishing corporate and business campuses as far as anchor tenants are concerned and they will draw other tenants to the region. Other small and mid-sized companies may look at taking office space in various office towers and Grade-A developments. However, the rates of commercial rent may not rise hugely in the short-term since land availability is still abundant in Noida. Daewoo Motors India had previously established a big plant at Surajpur in Greater Noida back in the year 1998.
More than 50 mobile units are already housed by Greater Noida and Noida including Xiaomi, Vivo and Oppo. The latter has its manufacturing plant in Noida and a second plant is already being set up in Greater Noida which will dish out around 10 million handsets annually. The Samsung plant will create more jobs and the expected investment for the industrial region in Delhi-NCR could be more than Rs. 10, 000 crore with more than 3 lakh employment opportunities being created. Noida could soon become the mobile phone manufacturing hotspot of the entire world in the future.
All these factors will positively impact real estate demand in both residential and commercial segments. With the Jewar airport being worked upon and comparatively reasonable property prices still available, Noida and Greater Noida should be a major residential realty growth hub of the future. The metro corridor will also boost connectivity immensely once it becomes operational. Earlier, Noida has been preferred by companies who preferred budget office spaces in the Delhi-NCR stretch. However, several MNCs and corporates have come into the region over the last few years. Around 13 million sq. ft. of commercial real estate is currently being built in the city. 62% of these are commercial assets as per reports.
Creation of more jobs will boost retail and social infrastructure in addition to overall housing demand. Prices and rentals are expected to appreciate in areas near Sector 81 and in this location itself. The law and order situation in the area has also improved which is seen by the setting up of the Samsung manufacturing facility. The new airport combined with commercial and industrial developments will drive future residential real estate markets in Noida. Several companies have come to Noida in the recent past including Birlasoft which is a CK Birla Group company, EXL, Ace Global, Amazon, Conduent, Ricoh and Pitney Bowes among others. Some of the top realty projects in Noida include Migsun Wynn, Godrej Solitaire, ATS Happy Trails and Godrej Nest among others.
