Noida and Gurgaon have evolved into prominent residential and commercial hubs in Delhi NCR. However, both cities have their unique set of advantages and disadvantages. Therefore, buyers should identify their investment objective and determine which neighbourhood best suits their needs.
informationsonly.com has collated some factors to consider before investing in Noida or Gurgaon.
Delhi NCR is a goldmine for property investment. However, since Delhi is unwittingly out of bounds due to high costs for many, individuals are increasingly eyeing NCR for property purchases. Hence, the real estate markets of Gurgaon and Noida have become the favourites among developers, investors and end-users alike. Although both the cities lie in the NCR region, they differ in terms of infrastructure, connectivity, quality of living, and real estate demand and supply.
While Noida is one of the largest planned cities in Asia, Gurgaon micro Market, though unplanned, have seen immense development with multiple shopping complexes and IT/ITeS giants dotting the city. Resultantly, these cities have not only attracted end-users but also investors from across the world.
However, the never-ending debate of Noida or Gurgaon- which is a better investment bet- has intensified with time. Therefore, let us look at the following factors and analyse which is a lucrative investment hub.
Noida vs Gurgaon: An overview
Noida has outgrown its title of Gurgaon’s poor cousin in terms of attracting corporates as it has witnessed some large deals of late. For instance, Paytm and Microsoft leased around 5.20 lakh sq ft and 1.50 lakh sq ft, respectively, and Yes Bank signed a deal for around 70,000 sq ft of office space. With its efficient road and metro connectivity, relatively affordable housing stock, robust power mechanism, and competitive rentals, Noida is emerging as a prime location for setting up data centres in North India.
However, this does not mean that Gurgaon’s potential has diminished. According to Experts, “The city has witnessed some large office space transactions despite COVID-19 aftermath. In 2019, the Haryana government adopted the Real Estate (Regulation and Development) Act, 2016, and by Q4 2019, the construction of new flats started, bringing in Rs 3 lakh crore-worth investments to the real estate sector. However, Gurgaon needs to invest in civic and physical infrastructure, including drainage and roads, as it is quite infamous for waterlogging during the monsoon season.”
Infrastructure: Aspect influencing investments
Outer road connectivity
The National Highway (NH) 8 connects Gurgaon to Delhi on one end and Jaipur on the other. Once completed, the Northern Peripheral Road (NPR), also known as the Dwarka Expressway would also provide a hassle-free connectivity route to Delhi via Dwarka. The eight-lane expressway project will also impact real estate in Gurgaon, Delhi and surrounding areas. In fact, as soon as the construction of the Dwarka Expressway started in 2009, the real estate market in Gurgaon boomed. Over the years, it has been one of the most sought-after residential destinations in NCR, attracting investors and end-users. Real estate developers are confident that NPR will considerably increase property prices and enhance real estate prospects in the areas nearby.
On the other hand, Noida is connected to Delhi and Ghaziabad through expressways. The Yamuna Expressway connects it to Mathura, Agra and beyond. The Noida-Greater Noida Expressway is also a major thoroughfare. It serves as a vital connectivity link for those travelling from Ghaziabad and Noida to multiple office complexes and IT SEZs across Sectors 125, 126, 127, 132, 135, 136, 142 and 144. Besides, it will also render seamless access to the upcoming Jewar Airport and Film City along the Yamuna Expressway.
Internal roads
With respect to roads within the municipal limits, Noida is much better planned. Both Noida and Greater Noida have been systematically developed with clearly demarcated sector roads and by-lanes with green belts. This has been before any real estate development. While in Gurgaon, the road infrastructure has come much later, and many areas still lack proper road nexus.
Metro connectivity
In terms of metro connectivity, Noida takes the lead. The Noida Metro serving the twin cities of Noida and Greater Noida is the second metro system in NCR after the Delhi Metro. The extension of the Aqua line of the Noida Metro would connect all the Noida and Greater Noida sectors with the public transport system of NCR, thereby enhancing the livability index.
Although the metro in Gurgaon is functional till Huda City Centre, and it also has a private metro (Rapid Metro Gurgaon) operational within the city, there are a number of sectors that remain unconnected due to lack of planning. While the metro line extension in Gurgaon is a part of the Master Plan 2031, its implementation might take another 4-5 years.
Airport
Being home to the Indira Gandhi International (IGI) Airport has always been an advantage for Gurgaon. Frequent travellers, especially those who work in the Multi-National Companies (MNC) in Gurgaon, prefer living here. Undoubtedly, Noida has a disadvantage in this regard. However, the upcoming International Airport at Jewar has given a new lease of life to Noida.
Education
Gurgaon has several reputed schools. However, it lacks colleges and universities for higher education. The nearest ones are at Sohna Road and Manesar, such as the Government Polytechnic Manesar and KIIT College of Engineering. On the other hand, Noida has many educational institutes like Galgotia University, Gautam Buddha University and Amity University. Moreover, Noida is much better organised in terms of vocational training.
Healthcare
Both Gurgaon and Noida have decent healthcare infrastructure, comprising major hospitals. However, Noida is preferred by the healthcare industry as it has better connectivity and is relatively affordable.
Desirability factor of properties in Noida and Gurgaon
- Gurgaon may take pride in the fact that it is home to Kingdom of Dreams and several shopping malls, but Noida has the Formula-1 track adding to its attractiveness. Moreover, Formula 1 is also getting an international cricket stadium next to it.
- The property options in Gurgaon are more in the premium category, with branded developers, such as DLF and Vatika, ruling the market, whereas Noida is a more affordable option for home seekers.
- One huge factor in favour of Gurgaon has been the presence of MNCs, which are responsible for the real estate boom in the city. However, exorbitant lease cost coupled with poor infrastructure is forcing corporates to shift their base to Noida, which is fast emerging as the next commercial hub.
- When it comes to safety, Noida is a better choice than Gurgaon. Statistically, the crime rate in Gurgaon is higher than in Noida. Hence, young people and families are increasingly choosing Noida over Gurgaon.
Return on investments
According to Experts, “It is a great time to buy a home. Given the property prices are relatively low, courtesy of the pandemic and the increased disposable income in the last decade, the residential market has become relatively affordable. Small developers have now been tended to align with Grade A developers to execute older and recently launched projects. Stress funds like Special Window for Funding Stalled Affordable and Middle-Income Housing Projects (SWAMIH) have also aided in project completion, thereby strengthening buyer confidence. Both Gurgaon and Noida are potential investment destinations. However, Noida leads in terms of infrastructure development and affordability.”
From an investor perspective, since the recovery process is in the nascent stage, prices are stable and may not rise exorbitantly. Therefore, long-term investors willing to see muted returns for the next year or two may consider investing now or can wait for the momentum to increase. Gurgaon promises high potential in the new sectors that have adequate housing supply as prices are relatively low. The expectation is that the Northern Peripheral Road, Central Peripheral Road, and the shifting of the Kherki Daula Toll Plaza will be completed soon, which will significantly boost the housing demand. Noida and Greater Noida being larger markets in terms of housing supply, may see a slower increase in prices than the neighbouring areas. With the new Jewar Airport and Film City underway, the rate of returns is expected to be higher in these areas, but the holding period has to be longer, adds Zaidi.
KNOW THE CIRCLE RATE OF GURGAON
Price trends in Noida and Gurgaon
| Configurations | Noida | Gurgaon |
| Capital value of a 2 BHK unit | Rs 55-80 lakh | Rs 80 lakh-Rs 2 crore |
| Capital value of a 3 BHK unit | Rs 80 lakh-Rs 2 crore | Rs 1.5-2 crore |
| Monthly rental for a 2 BHK unit | Rs 17,000-30,000 | Rs 20,000-40,000 |
| Monthly rental for a 3 BHK unit | Rs 25,000-45,000 | Rs 45,000-65,000 |
Both cities are likely to generate favourable returns from an investment standpoint. In Gurgaon, commercial and corporate offices are almost four times than Noida. Besides being close to South Delhi and the IGI airport, Gurgaon has additional advantages. However, prices here are now exorbitant, and an individual with a budget of Rs 50-60 lakh has to look for investment opportunities on the periphery. As an alternative, the vicinity of the Noida-Greater Noida Expressway offers a good investment opportunity in relatively smaller ticket sizes. Lastly, Gurgaon is still primarily an investor-driven market, while Noida caters more to middle-segment end-users due to its lower pricing.
While both cities have established their mark on the real estate market, investors must base their decision on the present and future infrastructural developments.