Delhi-NCR commercial REAL ESTATE MATCHES ASPIRATIONS OF TENANTS
Rapid development of Grade A offices and complexes has made occupiers stick to Delhi NCR’s emerging business hubs. Also, developers’ focus on building quality real estate has brought renewed activity in 2018
Commercial real estate and its development is said to be the barometer of success of any micromarket.
The Delhi NCR is one where central as well as peripheral sectors have continued to register development of commercial real estate. Quality office complexes have mushroomed everywhere catering to the high demand from corporate occupiers and retailers.
Data from Colliers India shows that Indian metros have registered robust demand in the last few quarters. “Institutional investment in commercial assets also remained solid with investors continuing to buy pre-leased and buildings nearing completion,” Collier’s 2nd quarter 2018 review of market shows.
In the main, the Delhi NCR stands out among the leading metros with its business districts and retail hubs. Even the development fraternity continues to look at the growth of commercial segment — considered vital for the market and the region.
“Commercial real estate development has always played a very important role in real estate, from shopping malls to office spaces, these are all an important part for a region’s growth,” Dhiraj Jain, director of Mahagun Group, said.
Here’s a closer look at some of the top micromarkets within the NCR: Gurgaon: The Millennium City has many commercial districts and destinations that have become favourite among occupiers. While Golf Course Extension Road is leading in terms of leasing, other important and established markets like DLF Cyber City, Golf Course Road, Udyog Vihar, and MG Road are also on the radar of tenants.
Commercial projects along Golf Course Road Extension are very well connected through the Southern Peripheral Expressway (SPR) and offer ample amenities for the workforce and business. DLF Cyber City continues to be another stronghold for several firms that look at connectivity as a major plus for their businesses and want to be closer to Delhi. This business district is well-connected with Metro, road and other means of transport.
This developer has been building another such project, DLF Cyber Park, closer to Cyber City in Udyog Vihar. This is right opposite Ambience Mall.
“The new building will have three towers and a notch over existing DLF buildings in the city. It is again a Grade A futuristic building with features of a smart building. Occupiers seeking to establish offices will look at these smart features like green certifications and energy saving techniques when they move in,” a realtor said.
Buildings in this estate will have a mix of offices, retail, and wellness areas and will have in-house parking backed by 24×7 security service. Realtors in the region have confirmed that the building already commands a premium and have already seen several multinationals and corporate showing interest in leasing.
Delhi-NCR commercial real estate matches aspirations of tenants
Delhi: Being central and prime, this continues to be sought-after by all kinds of business. Hence, established business districts like Jasola, Connaught Place, and Nehru Place are always in demand with large and small office operators. However, emerging districts like Aerocity have become prominent in recent times.
Notably, Aerocity has been gradually transforming into the de-facto central region, with its hotels, office complexes, and retail space planned for future use.
“The place has become an important location among institutional investors looking for Grade A offices,” Harinder Singh, a realtor in Dwarka region close to Aerocity, said. The growth of Aerocity until now has been so prolific that rentals in the micromarket can be compared with some other Grade A buildings of the NCR. During the second quarter, Colliers data shows that Aerocity registered a jump of over 8% in rentals, compared to the same period last year. Noida-Greater Noida: Compared to other peripheral markets, Noida has been equally important in terms of the growth of commercial real estate.
Asma Javed, AVP (leasing) at ATS Infrastructure, said: “Commercial real estate has always done well, irrespective of the market conditions. Also, with a new airport coming up at Jewar, the entire commercial sector is looking upwards in Greater Noida West and nearby regions.
Many micromarkets have emerged in the past three-four years in the twin cities of Noida-Greater Noida. The market can be divided into various buckets like commercial and industrial markets.
Sectors along the Noida-Greater Noida Expressway have emerged a clear leader in terms of rising demand and leasing. With decent appreciation in rentals, offices in these areas like Sectors 126-27, 128, and 135 have become popular in recent times.
Ease of connectivity, straight commute to these sectors, and connectivity with Delhi are some of the factors that have made the region sought-after.
Experts say that tenants across these districts have responded well to quality offerings. Leasing volumes registered across these compared to previous years are an indication that buildings of the future with amenities compatible with international standards will continue to perform well over inferior products. The development fraternity has taken a note of this.