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Noida vs Gurgaon: Which is better for investment?

Noida vs Gurgaon Investment

In Delhi NCR region, Noida and Gurgaon have bene categorised as important commercial and residential centres. Both these cities, have their own pros and cons. Hence, buyers are expected to decide which area best meets their needs and requirements. In today’s competitive real estate market, Noida Gurgaon investment is the hot topic running on the minds of every real estate and long-term investor. These are becoming more and more popular for property investment. These cities have a lot in common, and these 2 cities have been given the status of Tier-II cities by Central Government.

Gurgaon, also known as Gurugram, is the satellite city which is located on outskirts of Delhi. Gurgaon has been categorised as one of the fastest-growing cities in India and continues to rise since its inception in 2003. Noida, which is located on the outskirts of Delhi, has rapidly grown to be one of the most popular towns for investment in property in India. Noida, which has a population of more than 1 million people, is home to several industries including IT/Software development companies and pharmaceuticals.

Investors who want a detailed analysis on Noida Gurgaon investment are required to take note of 2 critical factors: 1) Potential for capital appreciation, and 2) Potential for rental yields. Gurgaon is the home to numerous large multinational companies and high-end shopping malls, and therefore it is an attractive place for both residential and commercial real estate investment. Elsewhere, Noida continues to have a lower cost of living and therefore, is a more affordable option for home buyers and property investors. Therefore, Noida has higher potential for appreciation in capital because of its lower property prices and higher appreciation rates. However, Gurgaon has higher potential for rental income because of its higher property prices and rental yields. Noida Gurgaon investment has always been a debatable topic for real estate investors and this article aims to help such investors.

Noida vs Gurgaon Investment
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Noida vs Gurgaon

So, let us now have a quick look at Noida vs Gurgaon: Which is better for investment?

1. Infrastructure and Connectivity

  • Outer Road Connectivity: Gurgaon is advantageously linked to Delhi and Jaipur through National Highway 8 (NH-8). Apart from this, Northern Peripheral Road (NPR), which has also been categorised as Dwarka Expressway, offers excellent connectivity from Dwarka to Delhi. Real estate developers are of the view that NPR should provide significant appreciation in property prices and should enhance real estate opportunities in Gurgaon. On the other hand, Noida remains well-connected to Delhi and Ghaziabad through expressways. The Yamuna Expressway links Noida to Mathura, Agra, and other regions. Noida-Greater Noida Expressway continues to act as another major thoroughfare in the city. 
  • Metro Connectivity: Noida is ahead of Gurgaon when it comes to metro connectivity. Noida continues to be served well by Delhi Metro Rail Corporation (DMRC), having extensive metro lines linking a range of sectors. On the other hand, Gurgaon continues to have a functional metro system which extends to Huda City Centre. However, there are several areas in Gurgaon which are still not connected through metro lines because of inadequate planning.
  • Internal Roads: Noida continues to have a well-planned network of roads within the municipal boundaries. It has distinct sector byways, green belts, and highways. Gurgaon, which was developed later, saw significant road infrastructure growth. That being said, there are still certain regions in Gurgaon which lack adequate road connections.

2. Quality of Life

  • Education: Gurgaon has numerous renowned and globally recognised schools, providing quality education to the residents. However, Gurgaon lacks options for higher educational studies. On the other hand, Noida has multitude of educational institutes, such as Gautam Buddha University and Amity University. Noida has been categorised as the city which is more organized for vocational training.
  • Healthcare: Both Noida and Gurgaon have well-established and advanced healthcare systems, consisting large and huge hospitals and modern clinics. However, people believe that Noida is much more affordable. 

3. Investment Potential and Returns

  • Property Prices: Property prices in both Noida and Gurgaon have seen significant appreciation in past couple of years. In Noida, average investment value for 2 BHK apartment ranges from INR 55 lakh to Rs 80 lakh, and in Gurgaon, it ranges from INR 80 lakh to INR 2 crore. Now, you can have an idea of the market value in both these cities. Monthly rental for 2 BHK apartment in Noida is between INR 17,000 – INR 30,000, and in Gurgaon, this ranges from INR 20,000 – INR 40,000. Therefore, investors can choose between Noida Gurgaon investment on basis the basis of their requirement (whether it is capital appreciation they want or higher rental yields). 

4. Return on Investment

Return on investment potential in both Noida and Gurgaon varies on the basis of property and location. Noida gives better opportunities for investors and residents looking for affordable housing, catering to larger segment of the population. On the other hand, Gurgaon offers strong returns for commercial property investments as a result of thriving corporate sector. 

5. Real Estate Demand and Supply

  • Residential Property Demand: Noida remains popular for affordable housing options, and has attracted several individuals and families who are on the hunt for budget-friendly homes. On the other hand, Gurgaon provides wide range of residential properties, which includes luxury and ultra-luxury apartments. The city saw a surge in demand for high-end residential units. 
  • Commercial Property Demand: Gurgaon is the major corporate hub, as it is the home to numerous multinational companies and IT giants. Gurgaon is a preferred destination for office spaces, and it has attracted significant share of renowned Fortune 500 companies. Noida, despite seeing growth in commercial sector, continues to lag behind Gurgaon for office space leasing. 

Conclusion

While this article covers the basics about Noida Gurgaon investment, there are several other factors which should be considered by investors. 

Gurgaon’s strategic location, extensive metro connectivity and availability of multinational companies, continue to make it attractive choice for investors. It gives higher potential for capital appreciation and rental income. 

However, it is advised that investors should carefully conduct a detailed analysis of their investment objectives, and they need to consider infrastructure, connectivity and quality of life of both the cities before making an informed decision.

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I'm Ved Prakash, Founder & Editor @Newsblare Media, specialised in Business and Finance niches who writes content for reputed publication such as Investing.com, Stockhouse.com, Motley Fool Singapore, etc. I'm the contributor of different... news sites that have widened my views on the current happenings in the world.

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