The commercial real estate sector of the National Capital Region (NCR) is likely report growth in the current quarter (October-December) on the back of improved demand, said a report by 360 Realtors.
The report said that as per its estimates commercial market will take a V-curve and return to normalcy by Q4, 2020, noting that NCR’s ccommercial real promises growth and continues to perform more than any other real estate asset class.
“Till Q1’2020, the commercial realty space was on a growth trajectory but in Q2’2020 owing to the COVID-19 crisis the sentiment remained muted but the market will again witness an uptick in the sentiments by Q4′ 2020,” it said.
It noted that several areas of Gurugram and Noida, have turned into business hotspots.
Gurugram has been a premium location for commercial office spaces in NCR for almost a decade now owing to its proximity to the national capital, apart from innumerable industries and business houses already located in the vicinity. Demand for office spaces in Noida has also been on a high growth trajectory after commercial space saturated in Delhi and availability dwindled in the national capital, the report said.
Micro-markets like NH-8, Golf Course Road, SPR in Gurugram have turned out to be the most lucrative options for leasing activities. The lower rent, new supply and infrastructure development have boosted the demand in NOIDA key sectors such as Sec-16, Sec-62 and Noida Expressway.
“Commercial Realty market is witnessing an upward trend and more and more buyers and investors are showing their interest in it because commercial asset class has performed much better than the residential sector over the last few years,” said, Ajay Rakheja, National Head, 360 Realtors – Commercial.
He added that while the residential market for Delhi-NCR has largely remained subdued in the last few years, commercial space leasing and investment has gained traction, especially in the last financial year.
Demand was largely driven by BFSI, FMCG, wellness and healthcare, consulting, head-offices of big corporate and MNCs, Rakheja said.
“In the wake of the pandemic, several factors will continue to affect development. Planning for office expansion or new leasing became a secondary preference due to cost optimization, social distancing, and hygiene norms. Also, the market is witnessing rising demand for Grade-B and Grade-C,” he added.