Noida has established itself as a booming location for office spaces throughout the years, owing to robust infrastructure development.
According to surveys, the office market in the Delhi NCR had higher net absorption quarter over quarter in the first quarter of 2021. It was no surprise that Noida accounted for more than half of net absorption, with Gurugram trailing far behind. It has established itself as a booming location for office spaces throughout the years, owing to robust infrastructure development.
Noida has outgrown neighbouring cities in terms of growth and infrastructure, and it continues to be a popular tourist destination. The commercial office sector continues to witness considerable take-up, with solid demand from IT/ITES, BFSI, and legal firms supporting development momentum and exhibiting the city’s robust commercial growth.
Surprisingly, the whole office market in India had a net absorption decrease of 33% quarter on quarter in Q1 2021, according to the Market Update – Q1 2021 report. (Q-o-Q). Even while 2020 finished on a high note, there was still fear about the market’s return to normality. Occupants were cautious, concentrating on reassessing their real estate portfolios and long-term commitments.
To make matters worse, an increase in COVID-19 cases in the second half of March caused occupiers to pause and postpone their real estate decisions once again. Pre-commitments in new completions significantly increased net absorption. In the first quarter, 31% of new launches were already committed. Leasing volumes in Delhi NCR climbed somewhat, rising from 1.9 million square feet in Q4 2020 to 2 million square feet in Q1 2021.
Occupants continue to explore their real estate portfolios, adopting solidification and advancement strategies to justify space requirements while controlling expenditures. The Noida market remained up with market requirements mixed with significant expenses compared with other NCR metropolitan communities, making the city stand out. The third wave of COVID-19 cases will predominantly drive the leasing momentum in the following quarters. Nonetheless, bringing attention to a few things assures that there is cause to be hopeful. The increased workplace engagement before the third COVID-19 wave bears testament to corporates’ assurance and obligation to return to work from the office. Landlords must remain receptive to residents’ wishes and provide adaptive options as far as space is concerned.
Interest in attractive office property that may provide high rental returns is increasing due to the emergence of REIT postings in the Indian market and the growing requirements resulting from new job opportunities. Noida is the most fantastic option for commercial real estate investment in Delhi-NCR.
The office zones (Sectors 62 and 63) and the Noida-Greater Expressway belt are very active. This zone’s physical and social infrastructure is superior to other places. It is connected to Delhi, Gurugram, Faridabad, and Ghaziabad via road and metro train. The Noida International Airport is also under construction. Currently, property expenses in this area are unnoticeable, indicating exceptional investment opportunities.