Are you keen on investing in real estate? Are you wondering about whether residential or commercial properties will yield higher returns? Think no more as commercial real estate in recent times has become one of the most desirable investment opportunities, especially in the Delhi-NCR region. Despite challenges faced during the pandemic, the commercial real estate sector will have a promising future in 2022.
With many fortune 500 companies headquartered in the region, the demand for Future investment in Noida will likely go up. Compared to the second quarter of 2021 Q2 of 2022, the Delhi-NCR region has recorded a 100% rise in the gross absorption of office spaces accounting for 2.7 million sq ft. After the pandemic, most businesses are preparing to welcome their employees back to the workplace. As a result, demand for the best commercial developer in Delhi NCR, which had plummeted during the Corona outbreak, is set to pick up steam. Additionally, as businesses seek out new office space, there will undoubtedly be a rise in demand for grade-A commercial properties with prime locations and facilities. There also has been a sudden surge in demand for co-working spaces in recent years post the pandemic era. Of the 2.7 million sq ft in Delhi NCR, 15% was co-working.
When we talk about commercial real estate Delhi NCR region or in Noida located in the Gautam Buddh Nagar district, is worth a mention as the region is rated as the third largest market for office spaces. The region is indeed a highly sought-after investment hub. Moreover, Noida has a literacy rate of 87%, and Gautam Buddh Nagar contributes 10% of UP's GDP, guaranteeing a promising future for the region's commercial real estate industry.
The city has witnessed numerous infrastructure developments in the past few years making it a coveted investment hub. Jewar Airport, which is slated to be India's largest airport, recently had its foundation laid by Prime Minister Modi. Apart from this, the Noida metro train network serving 21 stations and the six-lane Noida-Greater Noida-Yamuna express adds to the city's well-built infrastructure. Additionally, the construction of the Delhi-Varanasi High-Speed Rail Corridor is anticipated to change the face of commercial real estate Delhi NCR region.
Many IT, ITES, and electronic manufacturing companies are eager to establish offices in the city due to its robust infrastructure, making it a desirable location for Commercial properties in Noida. Notably, the Noida-Greater Noida-Yamuna expressway belt alone has contributed 40% to the country's mobile phone manufacturing and 55% to its components. Furthermore, the region's retail industry has benefited from the presence of well-known MNCs like Adobe, IBM, Headstrong, Sapient, TCS, Infosys, LG, Cadence, NIIT, and Oracle.
The city has already become a preferred choice for many realtors for building commercial properties. One of the upcoming includes Bhutani City Center 150, a Fresco Style high street retail with low-rise development located in Sector 150. The organization also has a ready-to-move property named Bhutani Alphathum, an innovatively designed high-rise Skyscraper. In addition, land spanning an area of 20 acres has been earmarked in the Greater Noida region to develop a data center park. It will be North India's first hyper-scale data center comprising 6 data center buildings. Recently UP Chief Minister Shri Yogi Adityanath inaugurated the first of the six buildings Yotta D1 project. The latest developments unquestionably indicate the region's rising commercial real estate market value.
The post-pandemic era has also seen a surge in retail spaces along with commercial spaces, with more consumers returning to real shopping venues. As per CBRE's India market monitor 2021, the absorption across Grade A malls and high streets in Delhi-NCR was 1.5 million sq ft, and in 2022 the numbers have gone up to 3.2 million sq ft. Developers are optimistic about better results in the upcoming years due to the strong resurgence. With the changing customer needs, more and more retailers are looking for high-end spaces that offer a seamless experience encompassing shopping, dining, and entertainment. Such lifestyle changes, rapid urbanization, and the involvement of FDI in the retail sector have propelled the demand for retail spaces in the region, thereby making them a lucrative investment option.
Owing to the presence of special economic zones, economic corridors, startups, and Fortune 500 corporations, the Delhi-NCR region, particularly in Noida, is now a desirable location for commercial real estate investments. It ensures long-term cash flow stability and a significant property appreciation due to the growing demand. Moreover, with the region of Delhi-NCR poised to become one of the most highly developed cities in India, boasting of a robust infrastructure, one can expect a significant rise in returns on investment in real estate, especially commercial real estate Noida.