Noida: The bright spot in NCR’s office space market

Posted by Saurabh Singh on May 17th, 2021

According to the half-yearly report published by Knight Frank India titled – Indian Real Estate: H2 2020, National Capital Region (NCR) has set new benchmarks in the commercial realty sector with gross office leasing of 2.6 mnsqft in H2 2020; a whopping 24% higher than the level recorded in H1 2020. Investment worth Rs. 258 Crore by Gulshan Group has also provided further impetus to Noida’s emerging commercial real estate segment. The project will be offering numerous options of the office space in Noida expressway on lease. Yukti Nagpal, Director of Gulshan Group vocalized, “We aim to deliver five million sqft of luxury housing and 4.75 lakh sqft of commercial space” and the project is presumed to complete by July 2021.

Key hotspots in Noida include Noida expressway, Sector 62, Sector 16 where prime developers including Gulshan Group have taken the front seat in accelerating this city’s commercial sector, providing the best commercial property in Noida, while beating its counterpart, Gurugram for the first time. The report also stated that even though the real estate segment in the commercial market came to a standstill due to the Coronavirus outbreak, Noida’s sales and demand was at a stellar 1.08 million sqft in H1 2020.

Noida’s commercial market looks extremely promising as it offers ample opportunities for potential investors to enhance their real estate portfolio. The soar in the city’s millennial population, fast-paced advancements in infrastructure and favourable FDI policies positionsit the brightest spot in NCR’s office space segment.

Various ambitious projects like the forthcoming Jewar airport, opening of Yamuna expressway, better metro connectivity in Noida-Greater Noida Aqua metro line and Delhi-Mumbai based industrial corridor (DMIC) coupled with reasonable rental prices in this strategic zone makes this city as a desirable proposition for corporates and industries. Additionally, the developers’ interests have surged due to thriving data centres that will promote more office space expansion.

This commercial hotspot has also turned out to be a favourite amongst existing occupiers due to the blooming IT/ITeS sector as well. The State government has also adopted proactive measures to ensure the growth in manufacturing units in Noida which has boosted investor demand. Encouraging changes in industrial policy, a better spot in the ease of doing business index and execution of Real Estate Investment Trusts (REITs) has garnered unstinting support for the growth in the commercial realty segment.

Moreover, many established players are shifting to Noida and Noida extension to launch their projects because of the State government’s new industrial policy. This presents a plethora of opportunities to create a conducive industrial environment that would aim at simplifying procedures and best-in-class facilitation services for industrial units.

Increase in approvals from the government, instituting the Tech zone as a nucleus of Mobile Open Exchange Zone (MOX) as an enabler for providing a platform for mobile manufacturers, research and development with other associated industries are few schemes undertaken to attract investment locally and globally.