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Plot or Flat in Noida for self use and for investment

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Plot or Flat in Noida for self use and for investment

Last updated: April 14 2012
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  • Plot or Flat in Noida for self use and for investment

    Of course the conventional wisdom is plot for investment let me put some facts:

    1) In Gurgaon, plot investments have performer at par or worse than flat investment. While flat rates have run far ahead of those in Noida, plot rates are in Gurgaon are languishing much lower than those in Noida in comparable sectors (say DLF sectors with sec 15)

    2) In Sec 93, better built societies like ATS and Silver City (I own a small one here) fetch almost double the rent of a similar size accomodation in sec 92 which is built on plot and is just across. Silver city is resided mostly by the corporate employees.

    My inference is

    1) In short term there may be aberrations, but in long term, what is preferred by most people for self use also gives better return.

    2) As preferences shift, rent moves much faster to reflect them than the capital values to start reflecting the preferences.

    3) In regions or locations which are resided by business class and retired people and traditional Indian joint family, plots are preferred (if can be afforded). Noida which is largely still devoid of quality corporate jobs is still in this class and therefore Plots run up much faster here.

    4) People working in new economy and especially nuclear families when both spouses work have very strong preference for gated, well maintained, equipped and serviced apartments.

    Question is, is Noida changing and if yes, how long will it take. You make money not by following the trend but understanding when is it reversing.
  • #2

    #2

    Re : Plot or Flat in Noida for self use and for investment

    I see hectic arguments on this subject on unrelated threads, but no contribution on this thread specifically created on this subject.

    Some are more keen on scoring brownie points than contribute to debate.

    I think better remain in read only mode.

    Comment

    • #3

      #3

      Re : Plot or Flat in Noida for self use and for investment

      Mr sharma - that's a good thread you have initiated as a lot of people can realate to it...My view -

      1. Traditionally, plots were much preferred over flats in Noida as the plot prices were inexpensive compared to today's levels..today not even a single plot is available than minimum 90-100k per sq mtr...This coupled with limited availability of luxury condo options like Pearls Gateway etc didn't leave much of options for end users but to buy and build their own kothis,,,

      2. Today, the preference seems to be shifting towards luxury flats like Lotus 300, Assotech celeste etc...As of now plots have liquidated and just the vacant land cost is costing minimum 2-3 crores for an average size plot of 250-300 sq mtr,,,If you add the construction cost it becomes quite expensive...Plus the cost of maintenance hassles, security issues doesnt make it a favored option...

      So, my money has moved from land to luxury flat...

      Comment

      • #4

        #4

        Re : Plot or Flat in Noida for self use and for investment

        ppsharma

        1.Noida plots have given fantastic returns over the past 3 years but have now become unrealistically priced and stanation appears to have set in. There has been very little rise since last diwali apart from Kisan qouta plots ( they started from a lower base).

        2. The base for potential plot buyers is now much more narrower and consists mainly of affluent people who have a need to park black money ( usually affluent and black money go hand in hand but the trend is slowly changing)

        3. Flats allow you to invest in CLP ( ROI is better as opposed to lump sum investment needed for most plots). There are many salaried buyers in the 2-5 crore segment who need the cushion of loans/ CLP payments and now find luxury flats a good buy.

        4. Prices of flats in proper Noida( sector 50 et al) have historically matched GGN, the problem now is that the new launches have been very modest/ dense. The density now is almost double that of GGN and that is the reason for the price lag ( noida flats and GGN flats are entirely different products).

        5. There are hardly any luxury projects in Noida
        Omaxxe Forest, Pearl are the ones that spring to mind and check out the prices here ( they are approaching the prices on GC Road). ATS is a great project but is not luxury.

        6. I have great hopes for projects like L 300, celeste, Meghdotom and to some extent ATS Hamlet ,JP golf and UGCC.

        7. You have a flat in Silver City and sometime ago there was a discussion on the higher price for larges flats.

        8 At the end of the day anything that is in limited supply and is of good quality will always find buyers.

        9. Prices in ATS 93 are around 10k , L300 is avl at around 7k. In my opinion is a better location and is more exclusive, I see no reason why it will not match the price of ATS ( if not exceed) when delivered. That will be at least a 50% move up in price over the next 3 years , I do not think that plot prices will move up as much over the next 3 years.

        Comment

        • #5

          #5

          Re : Plot or Flat in Noida for self use and for investment

          Kudos to dear ppsharma for initiating this wonderful thread at this cautious timing...I think if carefully debated and argued it should eventually benefit many high budget investors....

          I too am on this side of the fence and in full agreement with points included. Now awaiting zohaib2012 bhai's comments on appreciation of Noida Plots from here on.....

          Comment

          • #6

            #6

            Re : Plot or Flat in Noida for self use and for investment

            looking for plot/plot with CC/built up house on 112mtr at noida sector 40, 41, 46, 47, 50, 51.

            What is the going rates ? Anyone done/knows a deal which was concluded recently ? I might buy or sell depending on the rate ?

            Caution: I am a racist & discriminate against a race called BROKER. So all dallas stay clear.

            As per this Bl**dy race my existing plot is worth less than what it was a few months back & dealers plot next to mine has appreciated 25%. Because we the buyer/seller have moral obligation to feed Brokers family, pay for his lavish fancy life style & suv petrol.

            Comment

            • #7

              #7

              Re : Plot or Flat in Noida for self use and for investment

              Originally posted by sunnyhappy View Post
              Caution: I am a racist & discriminate against a race called BROKER. So all dallas stay clear.

              As per this Bl**dy race my existing plot is worth less than what it was a few months back & dealers plot next to mine has appreciated 25%. Because we the buyer/seller have moral obligation to feed Brokers family, pay for his lavish fancy life style & suv petrol.
              Jiyo mere raaja...

              Comment

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