Noida is on its way to being transformed into a commercial lease hub because of the commercial lease in Noida.
Enhanced infrastructure, new and upcoming SEZ and non-SEZ supply, increased metro connectivity and the presence of premium buildings continue to attract multinationals and corporate bodies from across the world to the National Capital Region (NCR).
It is now estimated to be the second-largest office market with a 20 percent share of the annual nationwide leasing volume as per a report by Colliers Research.
According to the report, NCR should retain its dominance in office demand over the next five years and commercial office space on Noida Expressway should witness a drive in demand.
Noida which makes up a pertinent part of NCR is likely to be transformed into an affordable commercial hub as per the report.
When it comes to Delhi, redevelopment projects are expected to change the face of the national capital and enhance the overall Delhi commercial lease market.
This is despite the fact that initial buildings were primarily occupied by banks, single-tenant state-owned companies, and public-sector units.
For optimizing real estate portfolios, large occupiers are more strategic in their real estate requirements.
They are pre-committing space for future needs, mentions the report by Colliers.
For instance, large occupiers such as Bank of America, Gartner, Boston Consulting Group, and Google among others have pre-committed office spaces in upcoming Grade A properties.
In fact, in preferred micro-markets, demand is expected to follow Grade A supply in the next few years which wasn’t thought of or even witnessed before.
It is pertinent to note that Noida-Greater Noida Expressway micro-market has a huge supply pipeline owing to which it is expected to gain prominence as a commercial lease property hub.
Around 64 percent of the total supply is concentrated along with commercial properties on Noida Expressway as per the research.
With the completion of Phase 4 of the Delhi metro rail network, Noida's office locations are expected to have access within a 3.0 km radius over the next three years.
As the walk-to-work concept picks pace and becomes increasingly preferred in the Corporate Real Estate (CRE) world, a robust metro network, as well as increasing connectivity, can hugely drive the demand for commercial properties on Noida Expressway.
Rather than IT or IT-enabled services, the real estate now offers commercial office space on Noida Expressway.
Accessibility has become one of the main reasons that decide and drive the demand for commercial properties on the Noida Expressway.
When it comes to SEZs which are a magnet for technology occupiers, Noida accounts for only 30 percent of the upcoming supply and is primarily concentrated at Noida Expressway.
Unlike the traditional image it has, Noida is gearing up to host a plethora of MNCs in the next few years.
In fact, as per the report, the city witnessed 1 million sq ft of absorption in Q1 2018 which was almost twice than Q1 2017 demand.