Factors Responsible For Unprecedented Growth of Commercial Real Estate in NCR
The commercial real estate sector in NCR has seen unprecedented growth in recent years, with Noida and Gurugram emerging as the new hotspots. This growth is due to a combination of factors, including infrastructure development and improved connectivity. NCR has always been a hub for commercial real estate development due to its strategic location and proximity to the national capital. However, the recent infrastructure developments, such as widening highways and constructing new metro lines, have made NCR an even more attractive destination for businesses.
Mr. Manoj Gaur, CMD, Gaurs Group, said, “The growth of commercial real estate in NCR can be attributed to the robust infrastructure development, especially in Noida and Gurugram. As Delhi became congested Noida and Gurugram emerged as two major alternatives east and west of the city. With rapid growth in premium residential living, the commercial infrastructure, both retail and office spaces took a vertical leap. Coupled with the favourable policies of the state governments and improvement in connectivity, both road and metro including the rapid pace of construction of Noida Airport, the development of the commercial segment in the regions, especially Noida has received a major boost.”
“The rise of NCR as a commercial real estate hub is also due to the availability of land parcels at reasonable rates, which is a rarity in other metropolitan cities. The region offers a perfect blend of affordable land rates and top-notch amenities, which has made it a preferred destination for businesses. The recent infrastructure developments and improved connectivity have made NCR an attractive destination for businesses. We expect to see more demand for commercial properties in these regions in the future,” said Mr. Amit Jain, Director, Mahagun Group.
According to a recent report by Anarock, Noida and Gurugram have witnessed the highest supply of commercial spaces in the NCR region. This has resulted in increased demand for commercial properties, leading to higher rental yields and capital appreciation for investors. Real estate developers are optimistic about the future growth of NCR’s commercial real estate sector.
Mr. Deepak Kapoor, Director, Gulshan Group, said, “The NCR region is witnessing a steady demand for commercial properties due to world-class infrastructure and a skilled workforce. People want change, shopping online for so long has a changing scale, so the habit of offline shopping is growing and therefore demand for retail and commercial office spaces. Now commercial establishments are gearing up again for the office work culture which became extinct during Covid. The unprecedented growth of commercial real estate has been fuelled by the emergence of new industries and startups, which have been constantly seeking a space to grow. With the region’s expanding economy and favourable business policies, there is a surge in demand for commercial spaces, which is driving the growth in this sector.”
Mr. Ajendra Singh, VP-Sales & Marketing, Spectrum Metro, said, “Strong infrastructure development, particularly in Noida and Gurugram, can be credited with the expansion of commercial real estate in the NCR. These areas are now very accessible to commuters thanks to the construction of contemporary roads, metro lines, and flyovers, which has made them a hub for enterprises. The government’s beneficial policies have also been a major factor in this rise. We anticipate that the commercial real estate market will continue to expand in the upcoming years due to the enormous growth potential of this area.”
The emergence of NCR as a centre for commercial real estate is also attributed to the affordability of land parcels, which is uncommon in other major cities. The area has become a popular business destination because it provides the ideal balance of low land prices and first-rate amenities. The recent improvements to the infrastructure and increased connectivity have made the NCR a desirable location for businesses. Future demand for commercial real estate in these areas is anticipated to increase, says Harpal Singh Chawla, Director, Spaze group.
Noida and Gurugram, in particular, have seen a surge in commercial real estate development due to their rich connectivity and infrastructure. The completion of the Delhi-Mumbai Industrial Corridor has also brought new investment opportunities, leading to the development of commercial properties in these regions. Another factor contributing to the growth of commercial real estate in NCR is the availability of a skilled workforce and ample office space. Many multinational corporations are setting up their offices in Noida and Gurugram due to the availability of world-class infrastructure and affordable office space.