Property Market Informed View from Greater Noida Dealers

Nobody knows the Real Estate market better than the local property dealers. These dealers operate in specific areas and hence know their market inside out. They can sniff opportunities and predict trends with unbelievable precision. GroundTruths had the opportunity to bring together three key property dealers of Greater Noida to discuss the market trends.

Mr. Pavneet Singh (PS) of Saran Estates, Mr. Rajen Ahuja (RA) of Blessings Realtors and Mr. Vijay Kumar Goel (VKG) of Bhagwati Properties participated in the discussion that was moderated by GroundTruths Team(GT).

GT: Big Consulting agencies are saying that Real Estate Market has crashed by 25% to 30%. Our in-depth study of Greater Noida market did not indicate the same. We would like to know your views?

VKG: It’s important to understand the period under consideration. Around the time Mayawati government came in there was a big boom in the market. It was largely driven by the investors. If you ignore that “artificial boom period” as it was an aberration phase of the market and compare pre-period price and price today, actually the market is up by at least 10% to 15%. In the three key Sectors of Greater Noida, Alpha, Beta and Gamma the current market price ranges from Rs. 28,000 to Rs. 30,000 per square meter (for 60 to 120 sq. m plots). Before Mayawati Government came into power, the rate was lesser by about 10% to 15%.

GT:  There is a negative sentiment in the market. How do you counter the current market situation?

PS: Small units are USER based whereas bigger units are INVESTOR based. “USER markets” have not been affected. “Investor Markets” are down. “Transaction” and “Occupancy” continue in the USER market. Plots measuring 60 sq. m, 120 sq. m and some times even 200 sq. m plots fall in the USER category. Plots of 300 sq. m and more fall in the INVESTOR category. Today in Eta, you can get a 500 sq. m plot at the rate of 16,000 to 17,000 per meter. Same plots were previously sold for as high as Rs. 23,000 per meter. The investor market is not showing much activity in the current scenario. In today’s market, we do not follow-up with the client. If a client comes to my office, we show him the property; if he is satisfied he is sure to come back. I will never call him back to check up if he has made up his mind. Today people have ample time and so before investing any person will go to several agents. He will strike a deal with a person with whom he is most comfortable.

VKG: In today’s market, it’s better to leave the buyer on his own. Earlier we used to follow-up with the clients after a day. We used to follow-up again after a week. But today we have a different strategy – we are doing our duty by providing the relevant information. We do not follow-up. If we get the call back, we do not show too much eagerness. If the customer calls the second time, we get into action, as we get to know that the person is genuinely interested in buying.

VKG: Today about 65% to 70% of the dealer market is in a state of coma.

GT:   There is development all across

India. Why choose only Greater Noida from investment perspective?

RA: Greater Noida boasts of a great infrastructure. Talks about F1 race track and night safari are really heartening. I am receiving calls from even abroad. The Gautam Buddha University is world class. Education hub is evolving here!

PS: Greater Noida is very well planned. Each work is executed in a planned manner. Each execution is properly maintained!  Greater Noida is far better than Noida. Even people from Delhi come up with praises even when they are not buying property here. Actually, initially only USERs will come to Greater Noida. The growth of the city is IT dependent. People talk about industry but industry is labor dependent. It will take at least 3 years for IT companies to establish themselves here. This, together with better infrastructure, amenities, planning and execution makes it a self-sufficient city. You will stay here only if you have a requirement here. If my workplace is at Noida or at Delhi, I will stay there. But employment here will increase in the coming days.

VKG: Except for a few sectors in NOIDA, Greater Noida is by far the best. Greater Noida has good roads. Water quality is good. All villages here are separated by high-rise buildings in a planned manner unlike Noida where villages merge into city seamlessly at several places. Now that we live in Greater Noida and have got used to the Greater Noida roads, we find it difficult to drive at several places in Delhi and Gurgaon. We are relieved only when we hit back the Greater Noida roads with no traffic signals or jams. If we call someone from Sector 18 in NOIDA, we can accurately predict the time of a maximum of 30 minutes that one will take to reach here. No excuse for delay on account of traffic jam is valid here!

RA:  One good thing about Greater Noida is that there are no overhead cables here.

VKG:  There is a lot of greenery here. If the entire “Horticulture Plan” of Greater Noida Authority is implemented, this will be one of the Greenest Cities in India. There will be greenery round the year.

GT: Will you advise investors to invest in this market? And why?

PS: If you have an investment horizon of 3 to 4 years then you can invest here. Every investor market will need a USER. I would not advise that to people who are looking for 1 to 2 years of investment horizon. Rs. 1200 per sq. m is administrative and registration cost for a plot, which is reasonably high and is not helpful if the investment horizon is less.

RA: Next year and the year after that the rates will skyrocket. It will be beyond the reach of common man. These prevailing rates will not be there.

PS: I don’t say that you will get a good price. Unfortunately, 20% return is not seen as a good return by investors as they are spoiled by the quick “doubling” of investment in the past. I expect that one can double the investment in 4 years and hence I recommend a longer investment horizon. I agree with “Buddha” that you will not get the same prices in future as options will start getting limited then. For good returns, do wait.

VKG: In the Sectors of Alpha, Gama

and Beta one will not be able to get a good property. Sector 36 and Delta will also fall under this category. A buyer may even now not be able to get a good property in these sectors.

GT: Should I say that this is a good time to buy and can one get a good deal now?

RA: This is the right time to buy for user and investor.

PS: Definitely a good time for “users” to buy. Also, for investors, if you have a long-term investment horizon.

GT: There are some seasoned investors who know how to play the market. However, there are several new investors who have money to invest but do not know much about real estate investment. Where should they invest plot, commercial or flat?

PS: First land, second commercial, third flat.

RA: First land, second flat, third commercial.

PS: Four years back, flats were Rs. 1,500 per sq. ft., commercial (ground floor front facing) was 6,000 per sq. ft. and land price was 6,500 to 7,000 per sq. ft. in Swarna Nagri. Today land price at Swarna

Nagari is 28,000 to 30,000, commercial

front on ground floor is sold for Rs. 18,000 per sq. ft and apartment 3,200 per sq. ft. So history clearly indicates land is most profitable, followed by commercial and then flats.

GT: How have online portals impacted your business?

PS: Online portals are helping our business. Users today are computer savvy and before coming to us have already seen the prices on the Internet. So when they get a deal that is better than what is listed online, it makes our job easier!

GT: Last question, lot of people are scared to go to a dealer. Why?

PS: You will be the best one to answer this!

RA: One rotten orange spoils the market. One or two such dealers spoil the name of entire business community.

PS: – If you have no other option, you start dealing in property. There are too

many uneducated people in this field as there are no fixed criteria to join this business. Unfortunately, the image of dealers is linked to this large mass. When we started dealing in the year 2000, people asked how come educated people like you are in this business.

RA: “Because I am a dealer, it was

difficult to marry off my daughters as this profession was not associated with respectable people.

GT: Thank you very much for coming over and participating in the discussion. It was an interesting discussion. I can therefore conclude:

- Greater Noida is a great place to stay as well as invest.

- If you are a user – fish for deals in Greater Noida, this is a good time.

- If you are an investor with long-term horizon, good time to invest now. Speculative gains of the past will not be there.

- There are several good property dealers in Greater Noida. Identify them and deal with them.