Infrastructure development forms the backbone of any region’s economic growth, serving as a foundation on which various businesses, industries, and sectors thrive. It encompasses essential facilities and systems such as transportation networks, utilities, and social amenities that support daily operations and long-term growth. In the context of commercial real estate, infrastructure development is a game-changer. Real estate and infrastructure are increasingly intertwined as India’s economy grows exponentially. Building roads, bridges, public transit systems, and other important infrastructure projects directly impact the appreciation of surrounding property values.
In regions like Delhi-NCR, where commercial realty has been flourishing over the years, the segment houses a wide range of sectors, including retail, corporate offices, hotels, logistics hubs, Data centers and manufacturing units. Within this landscape, Noida and Greater Noida have emerged as key players, positioning themselves as commercial and industrial hubs. Their planned layouts, state-of-the-art infrastructure, and proximity to the capital city make them prime destinations for businesses and real estate investments.
As per industry reports, the average property prices in Noida experienced a quarter-on-quarter increase of 7% in the early part of 2024. This shift is fueled by robust infrastructure, improved connectivity, and businesses and industries’ growing desire for premium commercial spaces. Noida-Greater Noida’s market has seen a significant surge in demand for office spaces, driven by the strong presence of IT/ITES sectors. Tech giants and multinational corporations like Infosys, Wipro, Microsoft, and Samsung have established major offices in Noida, contributing to the region’s infrastructural growth. Tata Consultancy Services, India’s one of the largest IT companies, has leased 400,000 sq. ft. on Noida Expressway, marking one of the largest office space transactions in Delhi-NCR. This growing concentration of tech and IT companies is not only boosting infrastructure but also propelling the growth of the commercial real estate sector in the region.
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Moreover, both these micro-markets offer a more affordable alternative to Delhi and Gurugram without compromising infrastructure development. Infrastructure marvels, notably the Noida-Greater Noida Expressway and FNG Expressway, have been pivotal to the region’s growth. They have not only eased commuting for professionals but have also spurred the growth of various sectors such as retail, IT, and logistics. These well-developed road corridors significantly reduce travel time between key business hubs and residential areas, spurring the development of commercial spaces and fostering a well-rounded ecosystem of integrated developments.
Further, the upcoming Noida International Airport in Jewar promises to transform the region into an international business hub. Recently, the airport successfully conducted a test flight, marking a significant milestone in its development. Once operational, the airport is anticipated to bring an influx of international businesses and travellers, which will undoubtedly drive the demand for commercial real estate in the region. As per Colliers India report “Infrastructure & Mega Projects – The Key Enablers of Urban Expansion in India”, Jewar is emerging as one of the fastest growing real estate micro-markets due to the airport. The region has already witnessed a surge in land prices, with values increasing by over 40% in the last five years. Jewar’s potential for long-term commercial growth is becoming increasingly evident, attracting developers and investors looking to capitalize on this burgeoning sector.
Meanwhile, the Delhi Metro has significantly enhanced connectivity in the NCR, making Noida and Greater Noida highly accessible and fueling commercial real estate growth. The Blue Line links Noida with central Delhi, promoting ease of commute for professionals. The Aqua Line connects key sectors of Noida and Greater Noida, driving the development of IT hubs, retail spaces, and office complexes. Hence, this seamless connectivity further cements the region’s appeal for businesses and investors. In addition, DMRC has proposed to link the Magenta Line (Kalindi Kunj) with the under-construction Gold Line (Tughlakabad). This connection will provide another metro route to IGI Airport in Delhi, significantly enhancing the convenience and accessibility for Noida & Greater Noida residents.
Furthermore, the newly-approved project by the UP government, the “New Noida” project near Greater Noida, is expected to accelerate real estate and infrastructure growth in the NCR. Over the next 15 years, a newly-created city of the scheme will include industrial, residential, and commercial areas, which are expected to boost growth in the Noida-Yamuna Expressway area, spur real estate activities in various sectors, and contribute to the state’s economic growth. This development has already impacted the property prices in Noida-Greater Noida, with property prices rising by 20-25% in recent years. With improved infrastructure and connectivity, Noida- Greater Noida is set to post the highest growth rate, attracting investments in office, retail and data centre sectors.
Thus, infrastructure development remains the cornerstone of Noida and Greater Noida’s transformation into thriving commercial hubs. The region is poised for unprecedented growth with world-class expressways, robust metro connectivity, and upcoming projects like the Noida International Airport and the “New Noida” initiative. As the infrastructure continues to evolve, the region’s role as a critical driver of commercial real estate in the Delhi-NCR region will only strengthen, consolidating its position as a global business hub.
(By Dr. Amish Bhutani, Managing Director of Group 108)
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