Commercial real estate on a new high in Noida & Greater Noida

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Commercial real estate (CRE) in Noida and Greater Noida regions is experiencing a remarkable boom, driven by the state government’s massive infrastructure push and the surge in post-pandemic demand. The ongoing construction of Jewar Airport has further accelerated this CRE development, creating a fertile ground for high returns on investment.

“This presents immense opportunities for business owners and investors alike. The region’s robust infrastructure development, increasing leasing activity, and favourable long-term prospects make commercial real estate in this area a highly promising and profitable investment option,” says Sanchit Bhutani, Managing Director, Group 108.

The region is witnessing a notable rise in high streets, standalone commercial outlets (SCOs), and integrated malls with office spaces fostering vertical development of commercial spaces. The latest report by CBRE India, titled ‘India Market Monitor Q1 2023,’ highlights the increasing leasing activity and an excellent retail revolution in the region.

“The retail supply is projected to surpass previous levels this year, fuelled by pent-up supply and the launch of investment-grade projects. Additionally, the development and occupancy of commercial real estate have been positively influenced by general economic growth and the push towards an entrepreneurial culture, which gained momentum due to the pandemic, particularly in the Grade “A” co-working spaces sector,” says Vikas Bhasin, Chairman and Managing Director, SAYA group.

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In Q1 2022, according to last year’s CBRE South Asia research, lease activity in India reached 11.4 million square feet, clocking an increase of 97% YoY. This trend has only gathered steam, indicating a substantial unmet demand in the office market. Primary leasing is expected to drive retail space demand in 2023, contributing to the overall market growth.

“Another factor contributing to the surge in CRE development is the long-term nature of commercial real estate leases. Typically, rental rates increase by 15% every three years, making it a profitable venture for developers. Consequently, developers are launching new CRE projects and expediting the completion of under-construction properties to capitalize on this lucrative market,” says Ajendra Singh, VP-Sales and Marketing, Spectrum Metro.

A report by JLL predicts that the market for Grade A offices will reach 1.2 billion square feet by 2030.

“Looking towards the future, the long-term prospects for commercial real estate remain positive. This makes investing in CRE an attractive opportunity, not only because real estate is considered recession-resistant but also due to its tangible nature and continuous demand. Investments in CRE tend to retain their value over time, resulting in higher yields for investors,” says Pankaj Kumar Jain, Director, KW group.

However, this development is not just confined to Noida, Greater Noida, Gurugram and other Tier-I cities. CRE developers are now shifting their focus to Tier-II and Tier-III cities, emerging as new growth centres. Many firms are relocating to these cities to reduce expenses, and this trend has attracted corporate and industrial houses seeking affordable infrastructure for office spaces, warehouses, co-working spaces, and retail ventures.


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