The real estate sector has strengthened across the country over the past few years as a result of enhanced buying capacity, stable repo rates, the inclination of buyers towards owning comfortable living spaces, and, most importantly, the availability of promising projects for investment. Delhi-NCR, and particularly Noida, holds remarkable growth opportunities and economic efficiency in terms of commercial real estate developments. With the increasing demand for flexible spaces, co-working environments, and high-street retail, the commercial real estate sector in NCR is experiencing a surge like never before.
One of the current trends in the commercial real estate sector in NCR is the rising demand for flexible spaces. These innovative developments include shopping, leisure, and offices within a single project, providing a dynamic and adaptive environment for businesses. Additionally, co-working spaces and high-street retail are flourishing, catering to the evolving needs of professionals and consumers alike. Moreover, the increasing demand for commercial spaces has encouraged developers to explore new areas outside central business districts, developing commercial properties in suburban areas and satellite towns of NCR.
A significant catalyst behind commercial real estate growth in NCR is the emergence of significant infrastructure projects such as the Jewar Airport and the Delhi-Mumbai Expressway. These transformative developments are attracting businesses and investors to the region, further amplifying the demand for commercial spaces. Fast-developing neighbourhoods are also rapidly gaining popularity as residential destinations, consequently spurring a surging demand for commercial spaces.
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The surge in commercial real estate can be attributed to several factors. The shift towards hybrid work models, especially in the IT/ITES sector, has compelled businesses to seek more flexible and adaptable spaces. This trend has proven to be a massive success with the co-working model. Also, mega-shopping complexes have substantially transformed their architecture to incorporate open spaces, enhancing the overall experiential quotient while providing office spaces within the same complex.
Prospective buyers must consider the location, catchment area, and developer’s track record when evaluating to invest in commercial property. A strategic location near major transport hubs, business districts, and amenities enhances the property’s rental income and value. The catchment area, including proximity to residential sectors and demographic analysis of the surrounding regions, plays a crucial role in gauging the potential success of the business venture. Moreover, a developer’s reputation is paramount as reputable developers with a track record of delivering quality commercial properties attract high-quality tenants/customers, thereby increasing the property’s value.
The recent increase in leasing activities and rising rental prices in malls and commercial complexes in NCR is an encouraging sign for the region’s commercial real estate sector. This trend reflects the strengthening economy and the growing demand for commercial spaces for businesses looking to expand their operations. As people return to malls, the recovery is more than welcome. However, commercial realty has adopted a cautious approach by exploring multiple formats and providing value-for-money propositions for developers, investors, tenants, and shoppers. In terms of sustainability, we foresee no short- or long-term bottlenecks.
Mixed-use developments combining shopping, leisure, and office spaces have recently gained tremendous popularity. These hybrid commercial spaces cater to diverse needs, maximise space utilisation, and offer a more extensive composition. Developers have redefined traditional architecture by integrating various aspects of commercial real estate into one cohesive structure. The addition of office spaces to shopping areas has allowed structures to grow vertically, attracting office staff and ensuring a steady stream of customers throughout the week. These hybrid spaces are well-received by tenants and investors due to their convenience and variety of amenities, ultimately providing a consistent flow of shoppers. Consequently, mixed-use developments have become a sought-after investment opportunity, attracting a wide range of tenants and driving increased demand.
With NCR’s commercial real estate sector booming and offering an array of growth opportunities and economic efficiency, investors and businesses should grasp the chance to be a part of this thriving landscape. Whether it’s the increasing demand for flexible spaces, the rise of mixed-use developments, or sustainable rental prices and leasing activities, NCR’s commercial real estate industry is poised for remarkable success. The time to invest is now.
(By Dr. Amish Bhutani, Managing Director, Group 108. Views are personal)