Noida-Greater Noida emerges as new commercial corridor

National Capital Region (NCR) continues to be the 2nd largest commercial office market in the country. In 2018, the overall NCR gross leasing absorption was nearly 10 million sq ft, of which, Noida’s share accounted close to 3.9 million sq ft, a 65%-70% increase from 2017. Within Noida, the key commercial office micromarkets along with their ongoing monthly rentals include Sec 16A (INR 75-100 per sq ft), Sec 1 to 10 & Sec 16 (35-70 per sq ft), Sec 57-63 (35-75 per sq ft), Noida Expressway (INR 40-60 per sq ft), and Greater Noida (INR 25 – 30 per sq ft).

Amongst these office markets, Noida – Greater Noida Expressway, which is a 19 km long signal free stretch starting from sector 94 till sector 153 has existing/ready office stock of close to 13 million sq ft including IT/ITeS, Commercial & SEZ projects, with roughly about 15%-18% vacancy. Some of the key developments on this stretch include Windsor IT Park, Tech Boulevard, Advant Navis Business Park, Oxigen IT/ITeS SEZ by Blackstone, Infospace IT/ITeS SEZ by Brookfield, Assotech Business Cresterra, Logix Technopark, Stellar IT Park, and the likes. In 2018, within Noida, Noida Greater Expressway micromarket continued to dominate the leasing activity with approximately 35%- 40% share. In lieu of the availability of good-quality real estate projects, good/institutional developer profile, state-of-the-art retail amenities within projects, large contiguous floor plates, good connectivity with Delhi and Greater Noida, this micromarket will remain the preferred destination amongst office occupiers in 2019 as well looking for large real estate consolidation, expansion and relocation strategies. In the recent times, many large office occupiers from other parts/pockets of Noida have relocated to this market, consolidated their real estate portfolios, and have already chosen this micromarket as part of their long-term business strategy.

Additionally, the upcoming supply perspective approximately 12-15 million sq ft of quality Grade A supply is currently planned/under-construction and will be scheduled to hit the market over the next 3-5 years, which will further ease the pressure on base rentals from infrastructure perspective. The two sections of the Pink line Metro of DMRC is scheduled to be completed, that will provide excellent connectivity between West Delhi, South Delhi & Noida. Also, the recent announcement from the U.P. government to have its own airport near Jewar, which will have tremendous socio-economic benefits to the region.

Given its strategic location advantage, and constant upgradation in the current ecosystem, it’s just a matter of time that this stretch becomes a self-sustainable micromarket of the future.

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