Several factors have contributed to Noida’s rise in popularity, making it ideal for renting commercial property here. When one looks at these and considers that all these factors are combining at the right time when demand for commercial leasing is expected to peak, it becomes the most desirable location for commercial leasing. In the following segments, we have looked at some of these, and compared the statistics of Noida with some other towns to offer you a definitive guide to take action with respect to office, warehouse or retail leasing.
Well-connected roads and well laid out sectors in Noida make commuting convenient. The city is well connected to all the other NCR towns with an excellent road and metro rail network. It has always been very convenient to travel to Faridabad, Ghaziabad and Delhi from here, and now with the start of Eastern peripheral expressway, driving to Gurugram has also become smooth. The presence of multiple metro stations connecting all the major commercial centers also adds to the location advantage, reducing road congestion and decreasing commuting time.
It will not be a hyperbole to say that the civic infrastructure of Noida is the best among all NCR towns. While Gurgaon and Faridabad are still struggling to figure out ways to straighten their infrastructural woes due to complex land ownership issues, Noida always had the advantage of infrastructure being developed before the occupation of properties started in a location. This has also ensured that the commercial establishments in the town have been operating with a relative ease. A plan where commercial properties are spread across, has made sure that rentals of residential properties in any area have not skyrocketed as the occupation of commercial properties intensified here. The increase in population over the years has also ensured that commercial spaces in the region see good footfalls.
Noida has also been a technology hub, with both large and small IT companies, thereby making trained manpower available. With cheaper housing and easy commute, Noida has always scored over other parts of Delhi-NCR in terms of employee availability, especially at low to mid levels. A burgeoning working population adds to the consumer consumption businesses and also makes the town lively. A projected population of more than 15 lacs and a high per capita GDP keeps attracting national and global brands to set shop here. This creates a virtuous cycle where people from other parts of Uttar Pradesh and other neighbouring states are attracted to Noida, and create an even bigger consumption pool, attracting even more brands.
Various ambitious projects like the forthcoming Jewar airport, Yamuna expressway, better metro connectivity in Noida-Greater Noida Aqua metro line and Delhi-Mumbai based industrial corridor (DMIC) in this strategic zone makes this city a desirable proposition for corporates and industries. Additionally, the developers’ interests have surged as several new initiatives like a film city and special incentives for large data centres have been announced.
It is also a fact that the supply of A grade spaces for commercial lease are almost negligible in Delhi and therefore, NCR towns get an advantage. However, within NCR towns, only Noida and Gurgaon have seen the traction for commercial lease while Faridabad and Ghaziabad have lagged behind. Till 2020, Gurgaon used to get a lion’s share of the new leases, but recent data trends suggest a surge in share of Noida in the total fresh commercial leasing.
Probably, the lower cost of ownership as well as rents for similar spaces and better infrastructure is attracting corporates to give preference to commercial spaces in Noida. The cost of acquisition of a commercial property in Noida is typically 30% lower than it is in Gurgaon, while the lease rentals are almost 20% lower here. That clearly weighs high while corporates consider and compare the two important commercial towns of NCR.
The supply of good commercial spaces in the last few years has also been consistently good in different pockets of Noida. There have been many large as well as small developers offering commercial properties in Noida - Greater Noida region. The flexibility of spaces offered and the variety of properties give customers the comfort of expanding as needed instead of getting stuck for want of more space in future, a problem most of them have encountered in Gurgaon. Some renowned developers have shown their intent and capability in managing large commercial properties with elan. While corporates for office and retail spaces were forced to go to Gurgaon earlier despite exorbitant prices and poor infrastructure as the supplies were constrained in Noida, the situation has changed in the last few years with a number of new projects getting completed.
Noida also scores better than other NCR towns when it comes to security situation. Guragaon fares much worse in this respect and hence has been losing the prima donna position in office leasing. The security and law and order situation in the state has improved a lot in the last few years with Noida getting the special attention. The stable law and order status has also helped multiple locations in the region to develop simultaneously, thereby capping the potential explosion in lease costs.
This commercial hotspots in Noida have also turned out to be a favourite amongst existing occupiers due to the booming IT/ITeS sector and most of them have been looking out for leasing additional spaces. The town has also emerged as a hub of startups with companies like PayTm making their base here. A favourable investment climate for startups and improving opportunities for IT sector has proved to be a boon for commercial leasing activities in Noida. The State government has also adopted proactive measures to ensure the growth in manufacturing units in Noida which has boosted investor demand. Encouraging changes in industrial policy, a better spot in the ease of doing business index and execution of Real Estate Investment Trusts (REITs) has garnered unstinting support for the growth in the commercial realty segment.
Noida’s commercial market looks extremely promising as it offers ample opportunities for potential leasing activities. The availability of different types of spaces for offices, factories, warehousing and retail has ensured corporates and retailers flocking here looking for the most appropriate spaces. A proactive administration, excellent civic infrastructure, convenient and wide spread emerging web of road, rail, metro and air transport and industry friendly policies in the last few years have made Noida an attractive bet for commercial leasing activities.
ImpactR is a leading data-driven commercial leasing platform working with brands and property owners in the region, tracking the latest trends in commercial leasing and helping its partners adapt to those ahead of time.