Noida is considered to be one of the best realty destinations in Northern India and with the further development of its twin city, Greater Noida, its boundaries have been expanded. As a result, many multinationals have set their offices in this city. Noida market has witnessed robust growth in leasing in NCR.
Noida and Greater Noida have a presence of more than 50 big conglomerates from different domains like IT/ITES/Retail/Manufacturing, etc. The Government is focusing to work on Singapore as a model for Noida. The improvement in metro connectivity is accelerating the supply & demand graph of the city. The city has become an ex & core model for a plethora of SMEs, MNCs, IT Companies & factories. A tranche of manufacturing companies is also recouping & inching with the industrial sectors.
Remarking on the report, Mr. Ankit Kansal, Founder & MD, 360 Realtors, said, “The factors that make Noida an ideal destination for commercial activities are affordable rentals, superior connectivity with Delhi, infrastructure development & better yields. The demand in Noida driven by corporates, industries, manufacturing units, and institutional centers.
Noida is expected to remain an attractive destination for commercial realty occupiers seeking consolidation and large campus-style developments.”
Affordability is the driving factor:
The average rentals of office spaces are Rs.60 /sq per month & similarly for retail spaces are Rs. 115/ sq per month. When compared with Gurugram, the average rentals are 25% less in Noida, which is further enticing major corporates to move their operations to Noida. In Gurugram the average monthly rentals of office space are Rs. 80 /sq.ft. & for retail space is Rs. 150 sq.ft. a month.
Micro Markets like sec-62, Sec-63, Sec-2, Sec-3, Sec-4 & Noida Expressway are the prime sectors & constituted 95% of office space intake while the rest is led by other segments. It can be said that Noida is now also slowly finding its feet as a commercial office destination driven by mid-sized requirements and with affordability a key driving factor, Noida commercial market will continue to thrive.
Reiterating on the findings from the report, Ajay Rakheja, National Head- 360 Realtors-Commercial, says, "NOIDA and its surroundings is going to be the next NEW NORMAL commercial realty hotspot in North India. Its proximity and good connectivity with Delhi and other NCRs make it a viable location for commercial activities, it also has a very rich social infrastructure and some of the best quality retail addresses in NOIDA, making it the perfect retail destination. Recently a lot of IT/ITES and big conglomerates have opened up their head offices in the city, also a lot of manufacturing units have been established in the NOIDA extension, the coming up of Jewar airport will give impetus to the commercial realty in the region. Owing to its affordable pricing, and a good mix of the asset classes. Warehousing and supply chain makes an ideal location to services the most vibrant demand for the neighborhood needs we expect that in no time Noida & Greater Noida will overtake and position it more strongly among NCR counterparts to emerge as the leading commercial real estate market."
Other major findings of the report:
- In Q3 & Q4 of 2019, the Noida market witnessed unprecedented growth in leasing, leading in NCR & becoming the front runner with around 80% leasing. The report further states that in Q2 & Q3 of 2020, the scenario will change due to a slowdown in decision making on leasing (because of COVID-19 impact). But it is anticipated that a few segments in commercial may lead the pack & show rapid ascent. Fundamentally, industrial demand is high in NCR. Noida will have an edge with clear zoning.
- Ready to Move in Properties – Developers will find it tough to adhere to deadlines due to the lockdown. Thus, constructions will be on hold. This will prompt investors or companies to shift towards ready-to-move-in spaces either as fresh uptake or rented properties.
- Warehouses – Warehouse segment is the biggest beneficiary in the pre- & post-COVID-19 outbreak. E-commerce companies, FMCG products, health- care products have witnessed accelerated demand during this lockdown. Noida to also cater to UP and other states through its network of new highways. This would open up a large opportunity for the warehouse infra development in Noida shortly.
- According to the findings in the report, projects with higher returns will continue to be in demand. End users will start the actual movement in the next 2-3 quarters. However, the underlying fundamentals will stay strong.