The commercial real estate market in India, especially in NCR, is expected to see boom in 2023, with some interesting trends that will shape the future for the segment. The Delhi-NCR market is among the most-favoured when it comes to seeing the positive growth, both in terms of rentals and returns of retail and office spaces.
The strong growth of commercial real estate is driven by demand from start-ups and multinational companies (MNCs) who are eyeing to establish their offices and data centres in NCR. Because of the positive trend, leasing activity is picking up in the commercial real estate market. This sector is set to witness an appreciation of 20 per cent, which would be higher than cumulative appreciation in the past three years. Retail income is set to breach 15 per cent mark and office spaces are expected to witness a price appreciation of 15 per cent to 18 per cent in 2023.
Noida would continue to see significant commercial office demand from industries like IT/ ITeS/ BFSI and start-ups fuelling the growth momentum.
The growing number of businesses in Delhi-NCR has resulted in an increased demand for commercial properties. This provides an excellent opportunity for investors to invest in commercial real estate and benefit from the growing demand. What is particularly remarkable is that many businesses are setting up shops in the region. This has increased demand for commercial properties and increased prices, making it a great investment time.
Proactive government policies, especially in promoting the real estate sector in Delhi-NCR, with several favourable policies are encouraging investment in commercial properties. While on one hand, it fulfills the government’s aim of revenue generation, it is also providing a favourable environment for investors to enter the market and take advantage of the opportunities available.
The government’s commitment towards the growth of NCR within their respective states can also be seen in their continuous effort in infrastructure development. The region has seen significant improvements in infrastructure in recent years, including better transportation, improved connectivity, and the development of new business centres. This makes it an attractive location for businesses and can drive up demand for commercial properties, providing further investment opportunities. Some of these include the RRTS, Jewar Airport, ever expanding Metro network, improving roads, better policing, proactive policies and the establishment of massive data centres.
The growing demand for commercial properties in Delhi-NCR has increased rental income. This provides a stable source of passive income for investors and can help to ensure a good return on investment over the long term. A-grade office space rentals in Noida are expected to attain significant traction due to regained demand.
Commercial real estate investments can diversify an investment portfolio and reduce overall risk. With the growing demand for commercial properties in Noida, now is a great time to invest and take advantage of this opportunity.
(The author is the managing director of Bhutani Grandthum)
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