Noida surges ahead in office space leasing in NCR

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), said a report by 360 Realtors, adding that about 80 per cent of the total supply of office space was leased out during July-December 2019. In Q3 and Q4 of 2019, the Noida market witnessed unprecedented growth in leasing, and becoming the front runner with around 80 per cent leasing. 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. As a matter of fact, industrial demand is high in NCR and to 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, 63, 2, 3, 4 and Noida Expressway are the prime sectors and constitute 95 per cent of office space intake. Noida is considered to be one of the best realty destinations in Northern India and with 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.

According to MD, 360 Realtors, Ankit Kansal, the factors that make Noida an ideal destination for commercial activities include affordable rentals, superior connectivity with Delhi, infrastructure development and better yields. The demand in Noida is driven by corporate, 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 rental of office spaces is ₹60 per square foot per month and for retail spaces it is ₹115 per sq foot per month. When compared with Gurugram, the average rental is 25 per cent less in Noida, which is further enticing major corporate to Noida.