Investors are drawn to residential sites near the Yamuna Expressway.

Demand for residential plots along the Yamuna Expressway in Delhi NCR has increased dramatically in the previous six months, resulting in a 10-15% increase in property prices. The following are the key variables that have boosted the demand for residential plots in the area, as well as their capital values.

After a three-quarter slowdown, the real estate market in Delhi NCR showed indications of revival in January-March 2021. While ready-to-move-in or soon-to-be-moved-in residential configurations remained popular, home plots, notably along the Yamuna Expressway in Greater Noida, were also popular. 

The anticipated infrastructural developments in the recent 6-7 months piqued investors' interest in the stretch. A 1000-acre Film City has been proposed in Sector 21, as well as a 300-acre Furniture Park and the new Jewar International Airport. 

These developments, taken together, would open the door for thousands of new job opportunities and state-of-the-art infrastructure. Property capital and rental demand are expected to rise as a result of a stronger employment market and infrastructure, which has attracted investors' attention.

Due to a scarcity of ready-to-move-in homes and the delays associated with under-construction residences, investors' attention has switched to residential plots along the Yamuna Expressway. Along the Noida-Greater Noida Expressway, Sectors 90, 92B, 105, and 108 have also seen some plot sales. 

Because of the huge infrastructure projects announced and the rapid growth of Jewar Airport, the Yamuna Expressway remained the focal point. Apart from that, the Yamuna Expressway Industrial Development Authority (YEIDA) selling over 400 residential plots raised interest, resulting in a significant increase in land values along the length.

According to the Delhi Insite Report (January-March 2021), residential plot rates along the Yamuna Expressway increased by 10-15%  between October and March, reaching Rs 18,000-25,000 per sq m. Buyers chose smaller plots of up to 300 sq m because they are easier to resale, whereas larger plots of 500 sq m and 1,000 sq m were less popular.

Despite the fact that investors from the Delhi NCR and surrounding cities accounted for the majority of demand, the market also saw the return of Non-Resident Indians (NRIs) for the first time in the last 4-6 quarters. 

According to Noida, roughly 15-20% of plot inquiries have come from international investors who are interested in customizing their residential needs or earning more money now that land costs in the area have risen dramatically. 

For example, a 300 sq m site near the Yamuna Expressway that cost Rs 30-35 lakh in January-March 2020 is now worth Rs 45-50 lakh. Furthermore, with residential apartment values along the belt falling by 4-5% year over year, home plots appear to be an appealing proposal to investors given the current market conditions.

Though market sentiment has dipped slightly since April due to the second wave of Coronavirus, things are expected to improve as the number of cases declines. International travel limitations and financial difficulty in different sectors may keep investors away for the time being; but, industry veterans predict that the market will soon turn the turnaround. 

Aside from the present infrastructure developments, the idea to revive the Formula One track - Buddha International Circuit in Greater Noida - would be critical in improving the Yamuna Expressway's real estate potential and attracting investors from all over the world. Besides, the proposal to connect the Aqua Line Metro to the Jewar Airport and further link the airfield to the Indira Gandhi International Airport (IGI) is also viewed as a growth propeller. 

Nevertheless, a lot depends on the timely and effective implementation of these infrastructure projects, as connectivity and employment are the major decisive factors for real estate investors.