Noida leads commercial real estate property in NCR

A new phase of growth and development entered in commercial real estate property in NCR . As per recent research reports, NCR accounts for more than 30 percent absorption of commercial real estate property in ncr – the highest in the country. These are astonishing numbers!

Notably the growth comes mainly from the Expressway corridors. In Noida, the Noida-Greater Noida Expressway belt enjoys the most impressive level of infrastructure development and that is why hundreds of corporate houses are moving in here at a sustained pace. The same goes with Gurugram wherein the Delhi-Gurugram Expressway and Dwarka Expressway drive growth for the commercial real estate sector as well as housing segment.

The NCR generally adds 1-2 million square feet of commercial real estate space every quarter and this is consistent for the past several years. The best part is that the absorption rates are pretty high and you would hardly find a Grade-A office vacant for a long time.


According to Bhutani Group, the Noida – Greater Expressway belt is the most potential option for corporate houses and start-ups looking to set up or expand their offices in India. “Our first commercial real estate property project in the Noida – Greater Noida Expressway belt was so well-received that we were bound to launch yet another project in a matter of a few years. The demand is pretty vibrant and we are able to sell out the space at a rapid pace,” says Ashish Bhutani, CEO – Bhutani Group.


The Bhutani Group has been at the forefront of leading the commercial real estate sector in Noida. With their latest project Cyberthum, the company is all set to build the tallest commercial real estate tower in the NCR – measuring 50 storeys of excellence.

The pace of construction for their first project Alphathum is unbelievable and the project is running well ahead of time. At a time when most real estate developers are struggling to meet their timelines and delaying their projects by several years, Bhutani Group has set new standards by beating the timelines with exceptional planning and management.

Meanwhile, the research studies state that Noida is the most favourite location for corporate houses because of its superior infrastructure and lower prices.

Commercial rental yield in India: A must-know for you

Many of the NRIs are now looking for commercial real estate property investment in India considering the less than expected rental yields from residential properties in India. Currently, commercial real estate property yield in NCR, Mumbai, Bengaluru, Pune, Hyderabad and Chennai are the favourites owing to the availability of Grade-A offices, IT parks, co-working office spaces etc in these cities.

Since the supply is yet to meet demand, these office spaces are assured of tenancy which is attracting the likes of NRIs when they consider commercial vs residential property investment in India.

To reiterate, the co-working spaces are popular among start-ups looking for high-quality spaces at affordable costs. They are looking for affordable spots where opportunities are aplenty.

There is also robust demand from corporate which is :

Why commercial office space vacancy has halved in the past 6 years…??

 

Pre-leasing is also high which is suggestive of occupier’s interest in commercial spaces and the sustained demand. The commercial rental yield in India are firming up faster and also have better Internal Rate of Returns.

Their interest is also piqued by the fact that highest rental yield in India are possible through commercial property investment in India. The commercial rental yield in India plays an important role for NRIs looking to invest in their home country.

In fact, in the past couple or more years, the correction in pricing and muted sales of residential projects has had a negative impact on investors’ attitudes. Rather than investing in residential properties, they are looking towards commercial property investments in India.

However, commercial property investment in India is preferred owing to capital appreciation and healthy leasing.


“The commercial rental yield in NCR is much more attractive compared to residential.”


The diversification of assets by NRIs is also owing to the fact that such commercial property investment in India generates fixed incomes. It matters to NRIs when they consider commercial vs residential property investment in India.

Experts from the industry state that when it is important to consider that returns outperform mutual funds, sensex, traditional Fixed Deposits, with an average rental return of 7-8 per cent and 18-22 per cent of overall returns.

As comparative yield incomes are less in international markets like London and Dubai, NRIs are increasingly looking for commercial real estate property investment in India. While residential real estate continues to face challenges such as lower sales, lower consumer interest and high inventory, annual absorption of office spaces continues to be robust when it boils down to scrutinising commercial vs residential property investment in India.

An increasing number of mid-sized and smaller transactions are happening with the segment clocking 18 million sq ft of absorption in terms of commercial property investment in India in the first half of 2017.

As per industry estimates, the second quarter of 2017 marked a record low for units launched considering that over 20,000 new units across the country had unsold residential units recorded at 4.2 lakh. This meant a fall after 30 months as per experts from the industry.

Best office space in Noida: Points to remember

Buy best office space in Noida is seen as a path to quick riches if thought out well and done at the right time. The mantra has been to hold on to property and when the value appreciates, it is sold out. Investment in commercial real estate property in India can be done without cash for down payment through loans or borrowing money.

After all, buying a commercial real estate is a complex task and the investment in commercial property in India depends on how well the investment can be managed.


Here is our guide for you where to buy the best office space in India….:


Developer’s reputation:

 

Since the transaction involves a lot of money, a good research can help out straighten a lot of things before buying office space for investment. Find out about the reputation of the developer, his track record and ask people around. Pick a developer with at least one successfully delivered project. If the developer is new, then a thorough background check and assessing credit ratings can help.


Earning asset:

 

Go for assets that have the capability to lease out and generate earnings for you. This can help cover maintenance costs and EMIs. It is necessary to be prudent when buying office space for investment and must invest in commercial property in India that can earn well.


Environment-friendly:

 

Go for houses that are high on greens and are environmentally sound. This can help save in the long-term and also help you earn a good name.

Investing in new and upcoming areas: When it comes to investment in commercial property vs residential, Noida and Gurugram top the list as compared to Delhi.There are numerous options of best office spaces in Noida and Gurugram. Not to disregard the developments but go for areas where commercial real estate is high.


Partnerships:

 

If short of capital, then look for partner/s. But it is important to have a contract which specifies who is responsible for what etc.

Investing in shares or equities: Investors can buy shares in real estate for periodic payments instead of investing a huge amount. However, weigh the pros and cons.

Take into account potential risks before investing in commercial property in India.


Location:

 

More popular neighbourhood may become unpopular over time owing to low connectivity, slow infrastructure, etc and the vice versa may also be true. So, it is important to be prepared for such fluctuations when looking for best office space in Noida.


Assets that are illiquid:

 

When market conditions are not good, it is not always easy to sell real estate. Investors who own property for commercial purposes need assets that can be liquid if need be for cash influx into the business.


Cash flow:

 

It is important to be prepared for issues from tenants or maintenance etc which can hamper cash flow.


Best office space in Noida can be possible if the market conditions and factors mentioned above are taken into account before buying office space for investment.

The Entrepreneur Magazine recognizes Ashish Bhutani under ’35 under 35’ list

The 35 people are a mix of beguiling divas, wealthiest, most promising businessmen and athletes under the age of 35, one of them is ASHISH BHUTANI, CEO, BHUTANI INFRA.


 

Recognizing the professional excellence and achievements, Ashish Bhutani, the CEO of the Bhutani Infra Group has been conferred with ’35 under 35’ list of achievers who have made a mark in the entrepreneurial landscape of the country.

The list includes OYO Rooms’ Ritesh Agarwal, actor Taapsee Pannu and cricketer Shikhar Dhawan.

The ‘Class of 2019’are those who always try to push the limits in every aspect of their work. Diversity can be the word to define these chosen few better. There is an actor who is defying the Bollywood norms by not doing the typical meaty roles an Indian actress is confined into to a woman shooter whose fingers trigger gold.

Propelled by an outlandish but utilitarian vision, Ashish Bhutani envisions a cityscape dotted with pockets of an unquestionably upscale life thriving on one word – ambience. Lamented by lack of concept-based space selling in the country, Bhutani built the real estate empire, Bhutani Infra, from scratch back in 2005.


As a young and dynamic corporate leader,

          Ashish Bhutani spearheads the Bhutani Group’s success story.


Having completed MBA from the University of Cardiff, UK and graduation from University of Sheffield, UK, he brings a global outlook towards commercial real estate development in India. He has travelled extensively across the world and is applying all of his know-how on global best practices in his projects.

Entrepreneur Ashish Bhutani is a thorough management professional who believes in fulfilling commitments to his company’s clients, partners and employees.

Under his leadership, the Group is achieving tremendous success and their flagship project Alphathum has been sold by more than 90% in a short span of 2 years, making it the fastest selling commercial real estate project in India today. The project is under full-swing in sector 90 Noida.

He is not only a corporate captain focused on project conceptualization and delivery, but also a thought leader who contributes to various social causes, from rural development and healthcare to education.

He firmly believes that all the children in our country as well as the entire world should be empowered with quality education so that they can make a difference in their own lives and to their families and the society at large.

Meanwhile, the Group recently launched Cyberthum , a commercial real estate project that will have the 50-store tower, the tallest in the NCR. The project is receiving rave response from buyers and a number of floors have been booked in the first few days of the launch itself.

Realty firms rely on commercial real estate for sustenance.

Indian real estate has been a roller coaster ride for the commercial real estate firms all through the year 2018. The Real Estate (Regulatory and Development) Act, 2016 is still in the phase of showing its effects that includes more transparency and lesser debt liabilities of the firms.

However, the demand for the residential projects is still just above the ground. The interesting fact that has come into light is that commercial real estate property in 2019 is going to shape the market; in fact it is going to support the market players in the tumbledown game. Let us find out more.


COMMERCIAL REAL ESTATE TRENDS IN INDIA

 

Reports reveal the average property prices all over India have risen to Rs 5,545 per sq ft i.e. just 1% from the previous year.

Meanwhile, the commercial real estate in 2019 is showing upward movement in terms of demand.

For instance, the demand for office property rose by 19%, moving across 39 million sq ft. Office leasing as well, registered 15% gains during first three quarters of 2018 crossing 33 million sq ft. as compared to corresponding period in 2017.

Since the supply is constant the rentals are in check. Therefore the firms dealing in both kinds i.e. residential as well as commercial real estate have been able to do well.

And those with more towards the commercial segment i.e. office, retail and hotel, in their portfolio are expected to grow. Those with just residential segment in their portfolio are witnessing high interest cost to sales ratio.

The upward commercial real estate trend in India is expected to stay for at least two to three years in a row. Hence real estate developers in residential segment are seen to shift towards affordable housing in 2018. And others will continue to have the mix as the sales in commercial deals will help them as cushion in valuation of their companies.


Residential real estate scenario

 

Sales in residential segment have drastically come down from the year 2013-14.  It is almost five years now and market continues to be sluggish. This has led to more inventory even after lesser launches across the country. Experts believe that it will take a considerable time for developers to clear the current stock.

The scenario is said to be worse in case of metro cities. Launches in Delhi NCR region are the lowest. Residential inventory with the builders remained 243 million sqft, which is equivalent to average sales of 63 months. In case of Mumbai, almost 29 million sqft remained unsold in residential segment, which is equivalent to average sales of 54 months.