A destination of choice for hospitality and commercial offices, Aerocity today is rapidly emerging as the promising alternate to some of the established office markets of Delhi NCR.
By Vineet Anand
A destination of choice for hospitality and commercial offices, Aerocity today is rapidly emerging as the promising alternate to some of the established office markets of Delhi NCR. With the first phase of development spreading across 65 acres approx., Aerocity offers state-of-the-art commercial office buildings along with 15+ operational/mix of boutique/five and seven star hotels. With advantages like – being closer to two main corporate hubs of NCR (Central Delhi and Gurgaon), proximity to Airport & National Highway, modern infrastructure and connectivity to Metro, Aerocity has been able to attract corporate occupiers from all parts of NCR, especially from South and Central Delhi.
Moreover, Delhi as a location has always felt the scarcity and need for modern office buildings that can offer large floor plates, high end infrastructure, retail amenities, ample provisions for parking, institutional ownership, etc., which is now being aptly fulfilled by developers and institutional players in Aerocity. One of the finest examples of this is the ‘WorldMark’ project by Bharti Realty, which is roughly a 1.4 million sq ft office, plus retail project spread across three towers. A Grade A commercial project with modern infrastructure, high end technical building specs, multi-tier security, provision of 60,000 sq ft of food court/eating options, provisions for mechanical car parking for visitors and employees, etc., the project has been able to attract key occupiers from Southern and Central parts of Delhi, like Airbus, Softbank, Azure Power, NSDC, IMF, Bank of Tokyo, etc. Some of the other prominent office buildings in Aerocity include commercial tower of JWT Marriott, Caddie commercial tower of hotel Novotel and Pullman and the likes.
Another attribute which has led to the increasing interest of office occupiers is the benefit on cost and the value being derived from this cost savings. The average rentals in Aerocity today range between Rs 165 and Rs 175 per sq ft, per month, which are almost 40-50% more economical than most of the Grade A office buildings in Central Delhi.
Given the increasing popularity of Aerocity, we can witness an increasing footprint of corporate occupiers along with increasing number of foreign and domestic travelers, due to its proximity from the airport. Aerocity is also slowly emerging as a destination of transit shopping, lifestyle and F&B and offers very interesting options for retail. Future Group has launched its high-end brand- Central, at World Mark offering close to 100,000 sq ft of retail under one roof, along with one of its kind shopping experience. Epicuria (a food destination) that also operates in Nehru Place, is also about to open in Aerocity, offering entertainment and F&B experience to its customers. In this above background, out of the total Grade A office stock of approximately 1.2 million sq ft and vacancy levels of sub 20%, the office rents will continue to witness an upward trend in short to long term.
Overall, the future of Aerocity looks promising and as it is slowly getting amalgamated by mix of retail, amenities and hospitality options, it has bright chances of emerging as a self-sustainable micro market in the near future.
(The author is Director-Office Services, Colliers International India)