edited by: Mohammad Haris
Last Update: February 27, 2023, 16:15 IST
Commercial real estate investments can diversify an investment portfolio and reduce overall risk. (Representational image)
The robust growth of commercial real estate is driven by demand from start-ups and multinational companies that are set to set up their offices and data centers in the NCR.
The commercial real estate market in India, especially in the NCR, is expected to witness a boom in 2023 with some interesting trends that will shape the future of this segment. The Delhi-NCR market is one of the most preferred markets when it comes to witnessing positive growth, both in terms of rentals and returns of retail and office spaces.
The robust growth of commercial real estate is driven by demand from start-ups and multinational companies (MNCs), which are set to set up their offices and data centers in the NCR. Due to the positive trend, the leasing activity is increasing in the commercial real estate market. The sector is set to witness a growth of 20 per cent, which will exceed the cumulative growth in the last three years. Retail income is set to cross the 15 per cent mark and office spaces are expected to grow in value by 15 per cent to 18 per cent in 2023.
There will continue to be significant demand for commercial office space in Noida from industries such as IT/ITES/BFSI and start-ups, thereby fueling the pace of development.
The increasing number of businesses in Delhi-NCR has resulted in an increase in demand for commercial properties. This provides an excellent opportunity for investors to invest in commercial real estate and benefit from the rising demand. Particularly notable is the number of businesses setting up shop in the area. This has led to an increase in demand for commercial properties and a rise in prices, making it a good time to invest.
Proactive policies of the government, to boost the real estate sector, especially in Delhi-NCR Several favorable policies are encouraging investment in commercial properties. While on the one hand it serves the government’s objective of revenue generation, it is also providing a conducive environment for investors to enter the market and take advantage of the opportunities available.
The Government’s commitment towards the development of NCR in their respective states can also be seen in their continuous efforts in infrastructure development. The area has seen significant improvements in infrastructure in recent years, including better transport, improved connectivity and the development of new business hubs. This makes it an attractive location for businesses and may increase the demand for commercial properties while providing further investment opportunities. Some of these include RRTS, Jewar airport, continuous expansion of metro network, improvement of roads, better policing, proactive policies and setting up of large scale data centres.
The increasing demand for commercial properties in Delhi-NCR has led to an increase in rental income. It provides a steady source of passive income for investors and can help ensure good returns on investment over the long term. A-grade office space rental in Noida is expected to gain significant traction as the demand for it picks up again.
Commercial real estate investments can diversify an investment portfolio and reduce overall risk. With increasing demand for commercial properties in Noida, now is a good time to invest and avail this opportunity.
(The writer is Managing Director, Bhutani Grandthem)
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