Need your advice on a buying decision. I want to invest in a residential plot. I have been researching for 6 months and have shortlisted a plot in sec-31, greater noida.

It is purely for investment purpose and horizon is 7 years post which i want to sell it off and book profits.

I had also considered 'apartments' and 'commercial office space' but concluded that they are in over-supply at least for the time being and might see correction over next 12-18 months.

I was upbeat about 'retail spaces' but again ignored it as i wanted to invest in a prime retail space of a prime locality but was getting small
'covered area' in my budget of 60 Lacs.

I finally concluded on residential plot (200 sq. m) in sec-31, greater noida.

While I am totally satisfied about the future of this town over a 20 year
investment horizon, but I have the following apprehensions:

- Whether this is the 'right time' to buy ? Various analysts feel that world economy is slowing, US has a looming recession, indian economy is showing signs of deceleration, inflation and interest rates are hardening and realty prices are tapering off and correcting.
Research reports are saying of a possible further correction of 15% from here.

- i have observed that in last 1 - 1.5 years realty has stagnated in general. In particular, there has been mixed trends. eg. gurgaon has corrected, rohini (i.e. delhi) has appreciated hugely and greater noida (a tier-II city) has remained static. This is further confusing my decision. It seems that satellite towns might not appreciate for the time being and there could be stagnancy for 2-3 years. Since my investment horizon is only 7 years i am apprehensive about my 'timing' of buying.

- My funds are presently parked in FDs, yielding after-tax returns of 8%. If greater noida remains static i will lose on the opportunity cost of FDs.
Also if there is any forecast for correction, i can buy this plot at a lower rate in 1-2 years.

- some reports say that correction will only apply to residential apartments and commercial office spaces and not on residential plots and retail spaces

Kindly advise on -

- View on future price trends for greater noida 'plots' (not apartments) . will there be major corrections?

- should i buy now or hold on the decision for the time being.

looking forward to your help and advice

rgds

Manish Gupta
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  • Hi Manish
    You have to consider one thing in property that if the location which you are choosing is good then irrelevant of the market conditions your property can always fetch you returns.

    Moreover you are ready to invest in property for a horizon of 7 years which by any standard is not a small investment horizon and if you are thinking to wait for another 1-2 years chances are that prices may not go down drastically in noida area bcoz you have to consider the fact that commonwealth are planned for 2010 and noida in anycase being one the best satellite towns can not escape from the real estate fever .

    Apart from this reason there are many other factors like formula one racing track ,proximity to delhi,airport,public transportation system is best in noida compared to other satellite towns ,this area offers you the best it job opportunities and due to the debacle in u.s.a it is possible that large nos of indians may come back to india and once they are back then possibly the demand may go up coz they will be the people hvng money and wld like to invest in property as this is still the most preferred investment area,
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  • Well said... Greater Noida is Dead and thing of past, after next few days No body would even remember the name !!

    DMIC,EP Expressway,Y Expressway Infra projects still hold good opportunity for this Region.
    Correct if I am missing something...

    Cheers!!
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  • No one will remember GN except..1 lakh ppl already residing in well developed Greater Noida. .

    And ..compared to "proposed" Jewar airport, IGI airport was always closer. Residents of GN know that.
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  • Jewar airport cancellation is a blow. But it is not a fatal blow.. no way.... It is like an own goal by the new chief minister. It is like shooting oneself in the foot in order to spite one's political opponents.

    In any case, DIAL has had a one point strategy to shoot down any Jewar proposal coming in from the UP govt. It had not taken off since 2001... Dunno what realistic chance it had even if the new UP govt backed it now.

    As a resident of Greater noida for past many years, i can still vouch that in years to come, it will be the envy of NCR when everywhere else is crowded out.

    From pari chowk to India gate still takes only about 30 mins.... even when driving leisurely. Today there is a bottle neck near Maha maya during peak hours. But once the bridge is expanded, it is a 6 lane road from greater noida to all the way to the heart of New Delhi.

    Greater Noida's time will come...
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  • I am surprised to see people here so out of touch with reality. GNOIDA plot rates have appreciated more than any other place in NCR in last 6 months. Go and check the actual deals that have taken place.
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  • Originally Posted by steelguy
    eastern peripheral expressway or EPE .would take atleast a decade see its brother western peripheral expressway (WPE) .it took 7 years and still the work is not even 3/4th completed .i would say avoid investment in this region ,and other regions like faridabad would get beneffited now.


    investments in bptp flats Neharpar would be better than investment in gr Noida plots?????
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  • Hey guys sorry to interrupt..Just wanted to know the actual definition of APPRECIATION ...

    With airport n metro plans gone for a toss i just want to know if demand is still on in GN ? I mean the prices of flats and plots might hv increased in last few months before this news but now ARE THERE ANY BUYERS for this property at the so called appreciated price ? Or is it that appreciation is only on papers/in theory right now ?

    Have only the rates INCREASED or do we hv buyers too at this increased price ?
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  • Originally Posted by abhishek1980
    Hey guys sorry to interrupt..Just wanted to know the actual definition of APPRECIATION ...

    With airport n metro plans gone for a toss i just want to know if demand is still on in GN ? I mean the prices of flats and plots might hv increased in last few months before this news but now ARE THERE ANY BUYERS for this property at the so called appreciated price ? Or is it that appreciation is only on papers/in theory right now ?

    Have only the rates INCREASED or do we hv buyers too at this increased price ?


    no buyers only brokers and investors resorting to distress sell.
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  • Hey cookie do u feel that projects like Paras Tierea will also get affected by this ? A few frenz of mine have invested there at 2800 psf as well as 3400 psf levels..

    Any suggestions ?
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  • Originally Posted by abhishek1980
    Hey cookie do u feel that projects like Paras Tierea will also get affected by this ? A few frenz of mine have invested there at 2800 psf as well as 3400 psf levels..

    Any suggestions ?


    no even inkling Dude.
    in fact I have contemplated Paras in resale.
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  • Originally Posted by abhishek1980
    Hey guys sorry to interrupt..Just wanted to know the actual definition of APPRECIATION ...

    With airport n metro plans gone for a toss i just want to know if demand is still on in GN ? I mean the prices of flats and plots might hv increased in last few months before this news but now ARE THERE ANY BUYERS for this property at the so called appreciated price ? Or is it that appreciation is only on papers/in theory right now ?

    Have only the rates INCREASED or do we hv buyers too at this increased price ?


    I want to know what do you think is reason of appreciation of Land's price. Authority allocation rate was 3k/m for Chi-v area. Now the price in 30K/M.
    Isn't that appreciation. Bhai...Flat ka pata nahi but price of land increase on the sole reason of being land.

    We have never sold our land so far, but last year our one plot in Meerut for 25 Lakhs which was bought for 45K in 1987. 60 times increase in 25 years. BEAT IT...No metro no rumor of airport was there.

    I gave you this example to help one understand that RE game of Land and flat are totally different thing. Land is like a plant you sow and ready to take care of it for long and it will reap fruits while flat investment is like trading commodity which needs a push at every step.
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  • Originally Posted by abhishek1980
    Hey guys sorry to interrupt..Just wanted to know the actual definition of APPRECIATION ...

    With airport n metro plans gone for a toss i just want to know if demand is still on in GN ? I mean the prices of flats and plots might hv increased in last few months before this news but now ARE THERE ANY BUYERS for this property at the so called appreciated price ? Or is it that appreciation is only on papers/in theory right now ?

    Have only the rates INCREASED or do we hv buyers too at this increased price ?


    Yes, there are actually buyers at increased price; I am one of those. And I know MANY end-users like me who have bought there in last few months.
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  • Originally Posted by Gelato1982
    Jewar airport cancellation is a blow. But it is not a fatal blow.. no way.... It is like an own goal by the new chief minister. It is like shooting oneself in the foot in order to spite one's political opponents.

    In any case, DIAL has had a one point strategy to shoot down any Jewar proposal coming in from the UP govt. It had not taken off since 2001... Dunno what realistic chance it had even if the new UP govt backed it now.

    As a resident of Greater noida for past many years, i can still vouch that in years to come, it will be the envy of NCR when everywhere else is crowded out.

    From pari chowk to India gate still takes only about 30 mins.... even when driving leisurely. Today there is a bottle neck near Maha maya during peak hours. But once the bridge is expanded, it is a 6 lane road from greater noida to all the way to the heart of New Delhi.

    Greater Noida's time will come...

    Folks have to actually live in Greater Noida to realise that it is not far from CP..and drive is great. GN to CP takes 30-40 minutes door to door. And people living in GN are not in this forum. Rest of the world is all "proposed". GN is today. One can safely invest in plot there (not YE, not NE, proper GN) as people looking to live there are not concerned with metro/airport...
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  • Originally Posted by steelguy
    dude last 25 years mein sari property isse zyada appreciate kri hain my grand father bought a plot in delhi unauthorised colony nangloi Rs 250persqyd , 400sqyd plot and now rates there are 40k persqyd . So its 160 X times return . But main thing is now a days people dont buy property in NCR without connectivity greaternoida is 65 km away from majority of delhi areas my reason of buying here was inly things like .. Night safari , airport , metro , f1, like one of its kind things i thought this region would do better than others but its just opposite every oither region in NCR has done better then this . And selling a property here is a very hard task . And only possible below 15-20% of any market price.


    Proposed Airport has also been rejected now.
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  • By the way which are the top 3 locations/sectors ( or to be posh locations in future ) in GN that residents would rate ?
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