Noida, Greater Noida fast emerging as commercial hotspots in Delhi NCRDecember 26, 2020
A flourishing base for IT-ITeS and electronics manufacturing companies coupled with easy and affordable connectivity with Delhi, state-of-the-art services at competitive rates and an expanding residential base has given major impetus to Noida and Greater Noida as the next commercial real estate (CRE) destinations in Delhi NCR.
Developers and analysts are of the view that Covid has further accelerated the demand for CRE in Noida and Greater Noida as corporates cut expenses without compromising on quality. The upcoming international airport and the proposed film city has also added to their rise as commercial hubs giving serious competition to Gurugram, which has ruled this space for over a decade.
Anarock Property consultants chairman Anuj Puri pointed out, “Frankly, Covid-19 came as a boon for Noida office market as demand for Grade-A office space in the city fared much better than its immediate counterpart Gurugram. One major factor is cost advantage that Noida enjoys over Gurugram. In an effort to curb their budgets amidst the pandemic, several corporates, start-ups and other businesses saw Noida as a better alternative in 2020”.
As per Anarock research, the average monthly rentals for Grade-A offices in Noida is between Rs 50-80 per sq ft, while in Gurgaon, it is in the range of Rs 85-125 per sq ft in prime areas.
Square Yards’s principal partner and head (NRI business), Anupam Rastogi said, “Noida and Greater Noida today have a presence of over 50 big conglomerates from domains like IT-ITeS, retail and manufacturing. Upcoming Jewar international airport and proposed Noida film city has given positive momentum to the overall real estate market in Noida”.
The improvement in metro connectivity is accelerating the supply and demand of CRE equally while the workforce finds the most affordable and high-quality living in this micro market of NCR, he added.
Max Ventures and Industries (MaxVIL) managing director, Sahil Vachani agrees. He says traditionally the office leasing market in NCR is concentrated in Gurugram and due to developments like Cyber Park, Cyberhub and One Horizon, the pricing has crossed Rs 120 per sq ft per month. There are cases in One Horizon and Two Horizon where rentals have hit Rs 150-160 per sq ft per month.
“What Noida is able to offer is that it is an attractive destination primarily due to infrastructure and accessibility. Second, there is now a housing base. So residential communities are coming for instance in Sector 150. Third, it has become an established centre of IT-ITeS companies. What this means that there are new micro markets which are coming up with great quality products which are extremely affordable compared to Delhi or Gurugram,” he said.
For instance, Vachani said, “Aerocity is Rs 200 per sq ft per month, while Connaught Place is Rs 300 plus and Gurgaon is Rs 150 for good buildings. In comparison, Noida is Rs 70-100 per sq ft per month with all the facilities and amenities”. MaxVIL’s subsidiary, Max Estates recently commenced construction of its third CRE project in Noida.
Ashish Bhutani, managing director of Bhutani Infra says Noida CRE is at the brink of change, against micro-markets, as appreciation is likely to speed up once ambitious infrastructure projects like international airport becomes operational. Bhutani Infra is developing three marquee projects in Noida.
“The reasons attributing to this appreciation will be upcoming infra projects, seamless connectivity with cities of UP and Haryana and a wide range of developers entering Noida with their unique futuristic projects,” he added.