Noida leads NCR market in office space leasing: 360 Realtors
New Delhi: Noida witnessed a surge in office space leasing in the third and fourth quarters of 2019 and recorded the highest leasing in the National Capital Region (NCR), according to a report by 360 Realtors.
Around 80 per cent of the total supply of office spaces was leased out during July-December of 2019.
“In Q3 and Q4 of 2019, the Noida market witnessed unprecedented growth in leasing, leading in NCR & becoming the front runner with around 80 per cent leasing,” it said.
The report further said that during the first two quarters of 2020, the scenario has changed due to a slowdown in decision-making on leasing, amid the coronavirus pandemic.
“But it is anticipated that a few segments in commercial may lead the pack and show rapid ascent. Fundamentally, industrial demand is high in NCR. Noida will have an edge with clear zoning.”
Noida’s office realty has witnessed space intake of 65 per cent in ready-to-move-in projects and 35 per cent for the under-construction ones. For retail real estate, the space intake is 47 per cent for ready-to-move-in projects and 53 per cent for under-construction projects.
In Noida, industrial sectors accumulated 50 per cent, a major market share followed by institutional and commercial sectors with 35 per cent and 15 per cent respectively.
Micro markets like Noida Sector-62, Sector-63, Sector-2, Sector-3, Sector-4 and Noida Expressway are the prime sectors and constitute 95 per cent of office space intake, it said.
“Noida is considered to be one of the best realty destinations in Northern India and with the further development of its twin city, Greater Noida, its boundaries have been expanded. As a result, many multinationals have set their offices in this city. Noida market has witnessed robust growth in leasing in NCR,” said the report.
Ankit Kansal, Founder & MD, 360 Realtors, said: “The factors that make Noida an ideal destination for commercial activities are affordable rentals, superior connectivity with Delhi, infrastructure development & better yields. The demand in Noida is driven by corporates, industries, manufacturing units, and institutional centres.”
He added that Noida is expected to remain an attractive destination for commercial realty occupiers seeking consolidation and large campus-style developments.
The average rentals of office spaces are Rs 60 per square foot per month and similarly for retail spaces are Rs 115 per sq foot per month. When compared with Gurugram, the average rentals are 25 per cent less in Noida, which is further enticing major corporates to move their operations to Noida. In Gurugram, the average monthly rentals of office space are Rs 80 per square foot and for retail space, is Rs 150 square foot a month.
According to the findings in the report, projects with higher returns will continue to be in demand. End-users will start the actual movement in the next two-three quarters, said the report, adding that the underlying fundamentals will stay strong.