Gurgaon Outpaces Noida in Commercial Real Estate Segment
Fuelled by multinational corporations and ever increasing number of startups, demand of commercial space in Gurgaon is increasing swiftly. Despite having affordable commercial spaces, Noida losses its charm to woo occupiers due to poor infrastructure required to run businesses.
Giving a tough competition to Delhi’s central business districts, Gurgaon has emerged as a shining city in National Capital Region (NCR). If compared to Noida, a neighbouring business district, Gurgaon is performing well on commercial realty charts owing to its strategic location. Proximity to Delhi International Airport allows Gurgaon to enjoy easy connectivity with different parts of the country as well as the world.
Rajan Kumar Hans, Director, Propwindow.com, comments, “The core stimulatior that attracts multinationals towards Gurgaon is the airport, facilitating get seamless connectivity to all parts of the world, which leads to easy flow of businesses.”
Connected with the capital, both Noida and Gurgaon attract IT/ITeS companies. Apart from the IT sector, there are several other domains like BPO, KPO, pharma, automobile, engineering, FMCG and banking that are setting up their base in NCR due to availability to infra as well as skilled workforce. While Noida primarily attracts eyes of takers who look for expansion or relocation of their businesses, Gurgaon is witnessing incoming of various multinationals and startups. Corporations like Cognizant, Big Basket and We Technologies are the ones that have recently taken space for their divisions in Noida, with the idea of relocation and expansion. Whereas, corporates giants like Google, Microsoft, HP, DLF, Siemens Power Engineering Pvt. Ltd. have leased out huge spaces in Gurgaon, giving it a global look.
While Gurgaon is coming up with numerous commercial projects, Noida has a few in the pipeline. Primary locations like Golf Course Road Extension, Sohna Road and Southern Peripheral Road in Gurgaon are attracting multinationals and corporations. These locations can be accessed by metro rail, rapid metro and autos, which are easily available in Gurgaon. Moreover, in Noida primary areas that have been attracting corporates are sectors 137, 100, 110, 142 and 150, among others which lie along Noida-Greater Noida expressway. Noida also has Delhi metro and with its extension up to Greater Noida in pipeline, these sectors would become easily accessible, but as of now, office goers take a lot of time to reach their destinations, especially during peak hours. Hence, getting workforce hired is easier in Gurgaon than in Noida.
In terms of infrastructure development, both Noida and Gurgaon have witnessed tremendous growth lately. Demand of corporates could never beat supply in both the towns because of the availability of numerous ready to move-in commercial properties. Looking at commercial real estate segment in Gurgaon, one can find skyscrapers with modern planning and designs. But when it comes to physical infrastructure, broken roads and congested stretches often lead to hours long traffic jam. On the other hand, physical infrastructure in Noida is fairly developed, offering broad roads and number of underpasses to streamline traffic movement.
With widening of NH-8 and development plans of various underpasses and flyovers, Gurgaon is likely to have a solution for traffic congestion soon. Gurgaon offers an upmarket lifestyle with huge commercial set-ups, plethora of opportunities for job seekers and number of shopping malls. Lately influx of people from all across the country has increased in Gurgaon owing to its consistent performance on return of investment charts.
Connectivity and Transportation
While both the cities are set to extend Metro rail further deep, connectivity will certainly get improved. Other than metro, Gurgaon is connected with Delhi with Mahrauli and NH8. Gurgaon also shares good connectivity with Faridabad via Aravali. Rapid metro rail in Gurgaon lets it score a competitive edge over Noida in terms of transportation, as its phase I route covers 5.1 km at an average speed of 30 kmph.
Noida is connected with Delhi by DND flyover and through Kalindi Kunj. As per the government plans, three proposed expressways will be passing through Noida, namely Ganga Expressway, Delhi eastern peripheral road and Upper Ganga Canal Expressway. Hans elaborates, “Noida and Gurgaon have almost same transportation method, it is improved social infra status, which works in favour of Gurgaon.”
Despite the affordable offices spaces in Noida, Gurgaon scores high owing to the fact that land cost here was comparative low. Moreover, in Noida, developers had to pay additional taxes for commercial lands. There is no denying the fact that Noida comes as an affordable real estate market in offering commercial spaces, Gurgaon’s improved support infrastructure and rapid metro let it have a competitive edge.
Rapid Metro Rail phase II is under construction in Gurgaon. This phase will connect Sikanderpur station to Golf Course Road, with six other stations. Authorities are anticipating the phase to get completed by 2016. Likewise, the metro rail extension is under construction phase in Noida. According to the 2021 master plan of the city, this extension will connect Noida and Greater Noida. A 28 km long stretch, it will connect Sector 32 via Sectors 50 and 71. Further, it will be extended up to Yamuna Expressway. A six-lane elevated flyover has been proposed, which will provide signal-free drive to the commuters from Sector 41 to SEZ Phase II. This could lead professionals swiftly into the city to their workplaces.
Realty experts attribute high demand of commercial market of Gurgaon over Noida, to lack of support infrastructure for businesses in Noida. Formerly preferred commercial locations of Noida have now reached to an extent where there’s no scope of expansion and lack of open space. A few budding sectors might boost Noida’s commercial realty market in days to come. Gurgaon enjoys IT, manufacturing and corporate occupiers, Noida on the other hand has primary share of IT.