The New Commercial Hub of Delhi - Greater Noida

The New Commercial Hub of Delhi - Greater Noida

Expanded infrastructure projects and reasonable land values ​​have not only paved the way for residential development in Greater Noida West but have also made it a preferred commercial destination in the National Capital Region (NCR).

Growth in residential and commercial real estate in noida follows a cyclical pattern where growth in one segment leads to expansion of another. The trend majorly highlights in the commercial property development in noida and Greater Noida West (Noida Extension).

With open spaces, wide roads and strong connectivity through the Noida-Greater Noida Expressway and Yamuna Expressway, Greater Noida West has not only been a preferred home buying destination in the National Capital Region (NCR), but has also seen traction on the commercial front.

Strategically located market

Commercial real estate properties in noida generate revenue in two ways—lease and capital appreciation. Both are largely dependent on the site of the project. Keeping this in mind, Greater Noida West is one of the most suitable locations for retail and office space investment as it is in close proximity to major routes of NCR including Taj Expressway and Eastern Peripheral Expressway (EPE). In addition, the area offers several residential opportunities nearby. This acts as a catalyst for further commercial development as the chances of getting into a well-established housing market in the surrounding area increase and the overall success of the project.

Demand vs. supply

Commercial investors refrain from buying retail or office space that is likely to remain vacant and attract diminishing returns. However, Greater Noida West, with over 380 residential projects in various regions, shows the growth potential of the area. In addition, there is a scarce supply of commercial developments in the micro-market which eliminates competition and helps investors command a premium. However, still, property prices in Greater Noida West are relatively affordable as it is a developing market and the land rates here are relatively low as compared to other commercial hubs like Delhi and Gurgaon.

Infrastructure developments underway

Greater Noida West enjoys smooth connectivity through several link roads and major thruways mentioned above. However, the connectivity quotient of the area with the proposed Jewar International Airport may improve further. In addition, Noida Metro Rail Corporation's (NMRC) plan to extend the Aqua Metro line from Knowledge Park 5 to Greater Noida will also enhance the connectivity network in the region. NMRC intends to develop this project in two phases. In Phase 1 a distance of nine km passing through Sector 122, 123, Greater Noida Sector 2, Ecotech and Greater Noida Sector 2 will be developed. The second phase will include four stations, Greater Noida Sector 3, 10, 12 and Knowledge Park 5.

Relatively lower lease rates

Average lease rates in Greater Noida West vary from Rs 25,000 per month to Rs 40,000 per month, which is quite reasonable as compared to the commercial lease rates prevailing in Delhi and Gurugram, i.e. Rs 50,000 to 80,000 per month. Sometimes the rent can go up to Rs 1 lakh per month depending on the micro market, the quality of the project and the amenities offered by the builder.

Currently, commercial lease rates in Noida Extension are low due to low land values. However, the prices may increase by 10-15 per cent in the near future due to planned infrastructure projects. Therefore, the future investment potential of the sector is quite high.