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Abstract

The hospitality industry in Delhi NCR has seen tremendous growth in the past decade especially due to recent developments in the regional suburbs like Gurgaon and Noida. Both of these emerging satellite towns are a hub for IT and business sectors. As land is a prerequisite for any kind of development, Noida and Gurgaon are the logical answers to the burgeoning need for development in Delhi NCR. In terms of inventory, Noida and Gurgaon have more options than any other city in the NCR. These two areas are consequently expanding and growing, and expansion opens opportunities for further growth in real estate. It is for this reason that these two cities now have mature real estate markets for different sets of buyers and investors. Among them, Gurgaon has significant number of hotels catering to the large scale businesses and corporate sectors, however Noida, although witnessed a huge growth in the business sector, lacks behind in the hospitality sector. Furthermore, what favors investors entering Noida is the lower pricing factor, which now promises better appreciation and returns on investments. The realty market in Gurgaon has now crystallized into one most favorable for buyers in the premium segment. About 17 million sq ft of fresh office supply is expected to enter the Noida market by the end of 2014. Even in terms of leasing activity, Noida is the second most favorable location contributing about 29% to overall office take-ups in Q4 of financial year 2012. Most of the transactions took place on the Noida-Greater Noida Expressway (TNN, 2013).