The first group housing project launched on Yamuna expressway was in form of Jaypee sports city plots in fag end of year 2009.
The rates then were around 30k per sq yd. After around 5 years from its launch, the rates are still more or less the same.
This stagnation was not far-fetched as this was always on cards.
The government’s idea of selling everything starting from Noida expressway till Yamuna expressway and Noida extension on the west side of the district (at the same time) always called for an immediate failure.
It is for this reason that Yamuna expressway was always considered the inferior cousin of projects launched simultaneously at other locations in Greater Noida and Noida expressway.
While the timing definitely left a lot to be desired, the world class expressway saw itself being thrown open to public almost 3 years later in 2012.
The opening of the expressway re-generated interest among the buyer community. Through this period before its official launch, projects like Supertech Upcountry, Orris Golf bay, NRI Residency did find takers for its plot based projects but even they have 40-50% unsold inventory till date.
The reasons for this is mainly attributed to the mandate of Yamuna expressway authority to complete at least 25% FAR construction by 2.5 years from the date of registry.
Since no life is expected here for at least next 6-7 years, construction is a 50% additional financial burden that a buyer shall factor in while buying.
The flat inventories on the other side are only 20-25% sold if we exclude Jaypee, ATS and Lotus from the list.
The government came up with a slew of announcements like wild safari, electronic manufacuring hub, free wifi etc. to uplift investor sentiments but its quite evident after seeing disinterest of corporates and HNIs, things won’t change much till at least mid of next decade.
Hence, our suggestion is that end users or investors shall keep a horizon of at least 10 years while considering buying at Yamuna expressway.
Post year 2025, only the best like Jaypee or ATS are expected to fetch between 10% to 12% return. Others might still be a lagger and may be only be as good as a fixed deposit from investment perspective.
Last updated: March 14, 2015 at 21:38 pm