The retail and commercial real estate market in India, specifically in NCR, is projected to further witness a healthy growth in 2023, with some stimulating inclinations that will shape the future of the segment. The Delhi-NCR market is among the most favoured when it comes to seeing optimistic growth, both in terms of leasing office spaces and high streets.

The reason behind the robust growth of retail & commercial real estate is the rising demand from start-ups and multinational companies (MNCs), which are planning to begin their operations, setting up their offices and warehouses, respectively. This has got another boost after the Noida Authority has offered space for startups and budding entrepreneurs in sector 81 on the ‘Plug & Play’ model where everything has been developed as infrastructure. Almost 13,000 sq. ft. area in the Old Court complex is on cards for e-auction.

An emerging trend of establishing data centres in the NCR has resulted in an escalation in leasing activity in the commercial real estate market. As per an estimate, the commercial sector is all set to see an appreciation of 20–25 per cent, which would be higher than the accumulative appreciation in the past 3–4 years. As per the predictions of market experts, retail income is set to breach the 15 per cent mark, and office spaces are likely to witness a price appreciation of 15 to 18 per cent in 2023.

Noida, Greater Noida and Yamuna Expressway would continue to see major commercial office demand from industries like IT, ITeS, and BFSI, large-scale manufacturing units and start-ups that are fueling the growth momentum. Recently concluded, the UP GIS (Uttar Pradesh Global Investor Summit) 2023 has extended opportunities to investors across the globe, and the stake of Gautam Buddh Nagar and Ghaziabad is outstanding. The state government has shown a strong willingness to change policies to make them investor-friendly to ensure ease of doing business. So the impact is coming not only from foreign investment but also from domestic investment, which is increasing its stake in the Indian real estate market.

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It is not only about the availability of land banks; the massive development of infrastructure has pushed the region into a gold mine for those who were looking for expansion. Noida International Airport, the high-speed rail corridor from Jewar to New Delhi, and the Freight Corridor at Bodaki are a few remarkable developments that make the region the most sought-after investment location for residential, business, and commercial activities. The rising network of expressways and highways, internal connectivity, and improving law and order have overall benefited the entire real estate market. Hence, the government’s assurance towards the growth of NCR within their respective states can also be seen in their uninterrupted effort in infrastructure expansion.

All these things make the region a strategic location for businesses and can drive up demand for commercial properties, providing further investment opportunities. The growing demand for commercial properties in Delhi-NCR has increased rental income as it provides a steady source of passive income for investors and can help guarantee a good return on investment over the long term. A-grade office space and retail rentals in Noida and Greater Noida are expected to attain substantial traction due to salvaged demand.

With the growing demand for commercial properties in Noida, Greater Noida and Yamuna Expressway, commercial real estate investments may see a boost.

Commenting on the same, Sandeep Sahni, Chairman, Ithum World, says, “The positive demand and enormous growth in infrastructural quality and development had pushed retail space leasing and increased the transactions of commercial real estate post-pandemic. This will surely increase by greater margins in the upcoming quarters.”

“We will be soon be offering possession of Phase 1 in Ithum Galleria, spread over 2.86 acres located in Greater Noida, to brands like Westside, Croma, Starbucks, Zudio, KFC, Chaayos etc.The initiation of new investors, luxury, and international brands, and further expansion of existing brands to new locations in Delhi-NCR are extremely good signs of a blooming period ahead. On the other hand, retail occupancies have contributed majorly to the renaissance of the commercial real estate sector post-Covid, both in the case of home-grown and multi-national businesses, food, cosmetics, beauty, and healthcare brands.” he adds.

Himanshu Garg, Director, RG Group, says, “Metropolitan cities and towns have seen a swift rise in population with good income equity, which certainly produces a satiable plea for commercial and retail projects in the vicinity, especially society shops and small and mid-size shopping arcades. A lot of national and local brands are securing deals and taking up spaces in newly-launched commercial and retail projects as they want to tap into untouched demographics and turn them into lifelong customers. There has also been a successive uptick in the accessibility of stylised retail and commercial spaces.”

“We are coming up with a shopping arcade in RG Luxury Homes located in Greater Noida West that will have approximately 41912 square feet of dedicated shops, a kiosk area, and space for other commercial activities, for which we are receiving vast inquiries daily. The major acceptance of price and scarcity of options in good retail and commercial spaces had also pushed demand in the market specifically close to or in densely populated regions, which has reinforced and subsidised the consistent peak in the demand for retail space,” Garg adds.

Suresh Garg, Vice President, Credai Western UP, says, “Real estate in Delhi-NCR is always considered to be the axis of desirability as far as demand is concerned. Demand for residential and commercial properties has gone up rapidly. Real estate assets and investment auxiliaries will be created for the sole purpose of investing and creating money, and this development will govern the market. In fact, commercial real estate, which generates income in the form of rentals, ROIs, and income-producing properties, has now become a sought-after investment option.”

The rising number of businesses in Delhi-NCR has resulted in amplified demand for commercial properties, offering an incomparable chance for investors to capitalise on commercial real estate and benefit from the growing demand.

A recent survey conducted by R&R By Rise shows the mood of the buyers and points to good times for the real estate segment in Delhi-NCR. According to the report, apart from investment in the housing segment, the millennial population is seeking opportunities in commercial real estate and income-producing properties, which generate income in the form of rentals and ROIs.