Noida sheds insolvency-hit budget market tag as luxury housing rises

Revised FAR/FSI limits, height relaxations lead to increased investor interest

Long known to be an insolvency-hit, budget market for realty, Noida is seeing high-end luxury homes coming up, as also, after the pandemic, a surge in co-development projects. 

Executives say upcoming Jewar airport is driving the shift, along with regulatory changes in handling stalled projects and proposed relaxations on height and in the floor-area ratio (FAR) further building confidence among developers. 

“While the Yamuna Expressway Authority (Yeida) has gained prominence due to its proximity to Jewar international airport, which is scheduled to become operational soon, its growth is linked to big regional infrastructure, which benefits both Noida and Greater Noida,” said Santhosh Kumar, vice-chairman, Anarock group, in an interview with Business Standard. 

Umesh Rathore, vice-president (sales and marketing), VVIP group, added that the Noida-Greater Noida-Yeida belt had seen a structural turnaround over the past few years, driven by the discipline brought in by the Real Estate Regulation Act, improved funding mechanisms, and strong infrastructure execution, which together have restored end-user confidence and sharply reduced project stress since 2019. 

According to the data from Anarock, more than 52,000 residential units were launched in Noida, Greater Noida, and areas under Yeida between 2022 and 2025. 

Of the total, Greater Noida witnessed the highest new supply of about 32,179 units, followed by Noida with 11,312, and Yeida with 8,544 units. 

Residential projects account for the majority of new launches, particularly in the premium and upper-mid segments. 

Analysts indicate all three markets have seen an average growth rate in prices of 108 per cent since 2019. 

Average residential values in Greater Noida rose from roughly ₹3,300 per square foot (psf) in 2020 to about ₹6,600 psf in 2025, according to Sahil Agarwal, chief executive officer, Nimbus Realty. 

“In premium Yeida sectors such as Sector 22D, luxury launches are commanding ticket sizes ranging between ₹7 crore and ₹11 crore for large-format apartments, reflecting infrastructure visibility and a growing appetite for branded, low-density developments,” he added. 

However, the market is diversifying. 

Amit Modi, director, County group, said:  “Large-scale investment is underway in data centres, information-technology parks, logistics hubs, retail development, and hospitality assets along the Noida Expressway and near the airport zone.”

The buyer profile too is changing, with high net-worth individuals, non-resident Indians, companies, entrepreneurs from Tier-I and -II cities and some celebrities looking at investment in Noida. 

This has led to developers like M3M India, Smartworld Developers, and the Gulshan group taking the lead in announcing branded residence projects. 

“We want to selectively expand, focusing on differentiated residential formats and mixed-use developments that align with evolving lifestyle and investment demand,” Yash Garg, director, M3M India, told Business Standard. 

“We are evaluating opportunities that benefit from proximity to the airport and key expressway corridors,” he said. 

Executives say more developers may look to enter the market with the Uttar Pradesh government introducing its draft “Building Construction and Development Bylaws”. 

The new bylaws encourage vertical development, linking the height of buildings with FAR and road width. 

The government has proposed no upper limit for the FAR on roads wider than 45 metres. Similarly, green-rated buildings will receive an expanded FAR at no extra cost to promote environment-friendly construction. 

“These changes are expected to improve project viability and encourage greater developer participation,” a developer told Business Standard. 

Rathore added these changes would make the market more attractive for new as well as existing players. 

On the other hand, large firms are opening up to take over stalled projects as co-developers and getting legal recognition as promoters via agreements that allow them to monetise unsold inventories, and utilise the unused FAR and floor space index.

A key factor has been the increasing adoption of the “reverse insolvency” framework, which allows construction to continue under court supervision instead of pushing projects into liquidation.

 

While legacy issues have not disappeared, Modi said the ecosystem was more stable today.