National Capital Region (NCR) has set newer benchmarks within commercial real estate sector both from office and retail standpoint and is considered as one of the brightest spot in the Indian economy.
Some of the key drivers that are cementing NCR’s position as a preferred choice for global occupiers include but not limited to the GDP of NCR, which is one of the largest in the country, and infact NCR is one of the 5th fastest growing economy amongst the asian cities. In terms of infrastructure, post the completion of phase-IV line, the Delhi metro will become the third largest metro network globally, with an estimated coverage of approx. 453 km, the first two being Shanghai with 644 kms and Beijing 600 kms approx. This will enable all the key office markets within Delhi-NCR to be seamlessly connected by metro and have last mile connectivity. Further, when it comes to startups whilst Bengaluru is considered the start-up capital, NCR is not far behind. The national capital region has beaten Bengaluru in the amount of funding raised by start-ups based in those cities.
Further, the next three years looks very strong and promising for NCR office market. We see a constant rise in the demand for office space year-on-year. The average office space absorption was 7-8 million sq ft between 2012-17, which has now reached over 10 million sq ft, and we see this momentum to continue for at least next 3-4 years.
Interestingly, this demand will be supported by an upcoming robust/quality Grade A office supply of close to 45-50 million sq ft phased out in next three – five years and is well spread between CBD & OFF CBD locations of Gurugram, Delhi & Noida regions. Some of the key markets wherein this upcoming supply will be positioned include Gurugram markets like parts of NH 8 (near DLF Cyber City & Ambience Island on the highway), MG road, Golf Course road extension, Southern Periphery road, and the likes. Some of the prominent developers in these markets include DLF, Hines, Ambience, Vatika, Bestech, M3M, Ascendas, Brookfield, Tata Realty, etc. In Delhi, the key markets include aerocity, south delhi (locations like okhla & naroaji nagar) and the likes with key developers being Bharti Realty, Max Estates, etc. while key markets in NOIDA include Noida Expressway, Sector 62, Sec 16. The major developers/asset owners in this region include Max Estates, Advant, NSL, Assotech, Brookfield, Blackstone, ATS, BPTP, Logix, and the likes.
Overall, NCR offers ample opportunities for office occupiers for optimizing their real estate portfolio whether it is for consolidation, expansion or relocation at various rental/price points across all these three major cities and micromarkets. The capital city/region looks extremely promising, with ever improving/upgradation in civic infrastructure, plenty of options to work, live, shop & play, it has the potential to offer a truly world class environment to witness as we take this journey ahead.