Most real estate markets in the National Capital Region (NCR) are reeling and the Yamuna Expressway is no exception. Despite having strong growth fundamentals, huge land parcels and a world-class highway, this area has not seen much success when compared to other parts of the NCR. We list 5 reasons why the Yamuna Expressway real estate market is under performing.
1) Litigation and land disputes are a big problem
One of the major bottlenecks for this region is the lack of clear land titles. Land owners are not happy with the compensation given to them for giving up their land and are fighting the issue in the courts. As a result, many under-construction projects including Special Economic Zones (SEZs) are stuck, making development here a though task.
2) Greater Noida poses stiff competition
Yamuna Expressway also faces tough competition from its more developed neighbours like Greater Noida. Greater Noida is an end-user favourite thanks to the presence of proper physical infrastructure connecting it to other areas in the NCR, leading many prospective home buyers to choose this area over Yamuna Expressway. What’s more, Greater Noida also has more housing stock with over 5,300 homes available compared to just about 430 homes in the Yamuna Expressway.
3) It is not an employment hub
Let’s face it; people want to stay close to where they work. But the Yamuna Expressway is not a job hub at all. Apart from a few IT companies, there are almost no offices or corporates operating in the region. This means there is almost no incentive for people to come and buy homes here. And once again, Greater Noida is the more appealing choice thanks to the number of employment opportunities present there.
4) There is almost no social infrastructure
Another reason why the Yamuna Express way is falling behind is the lack of social infrastructure. Apart from a few operation universities like Galgotias and the Noida International University – the area has nothing else to boast off. No hospitals, no schools and almost no entertainment or leisure hubs. This has been a big factor putting people off from buying homes here.
5) Price appreciation is practically non-existent
When it comes to price appreciation, Yamuna Expressway has been a downer. Prices here have only risen nominally over the past few years, increasing by barely 0.4% per annum over the past 3 years. This has in turn put off investors who may have wanted to invest here, expecting a major hike in prices.
Edited by- Nikhil Narayan Sivadas