- India’s real estate market proved to be resilient once again in 2023, drawing a record-breaking USD 5.4 billion, despite the volatility that had the world’s investment markets trembling.
- According to a recent research report by JLL India, the retail real estate market in India is expanding rapidly nationwide, and the report also revealed encouraging statistics for the years to come.
- Among the most promising investment hotspots, Commercial Real Estate in Delhi NCR in particular is emerging as an investment hotspot for savvy investors.
Growth of Commercial Real Estate in Delhi NCR
- By 2027, it is anticipated that the amount of new retail real estate space available in seven major cities will increase by 43%.
- Among the most promising investment hotspots, Delhi-NCR in particular has emerged as a the leader in this growth, outperforming other regions in various aspects of the real estate market.
- Due to the governments’ concerted efforts to make the area a global hub for manufacturing and corporations has influenced the growth of Commercial Real Estate in Delhi NCR and an upsurge in demand for Delhi NCR Commercial property.
- Delhi NCR Commercial property investment is further expected to expand at a rate of roughly 12%, providing it with new momentum going forward.
- Rents for A-grade office space are predicted to increase by 22-25% as a result of renewed demand for Delhi NCR Commercial property. It is undoubtedly a goldmine for investors hoping for high returns from Commercial Real Estate in Delhi NCR.
- MNCs and startups are looking to establish their businesses and data centres in the NCR region due to Delhi NCR emerging as India’s Real estate.
- The region’s commercial real estate market is also seeing an increase in leasing activity as a result of the positive trend.
- The commercial real estate market in Gurugram is witnessing a surge in investment from prominent investors and industry giants, which is contributing to the growth trend. It is projected that in 2023, Gurgaon Retail Sale Price will surpass Delhi Retail Sale Price for the first time, reaching 2,40,000 sq. ft.
- While office spaces should see a price increase of 18–20% in 2023, with Gurgaon seeing the largest increase, retail spaces should see an appreciation of 20%, and retail rental income should surpass 15%.
- Speaking of Noida, the demand for commercial office space is still high in the area due to the growth momentum of industries such as IT/ITES/BFSI, startups, etc.
Factors contributing to the growth of Commercial real estate market of Delhi NCR
Commercial Real Estate in Delhi NCR has consistently shown how resilient it is due to its diverse population and strong economic base, which creates an environment that encourages the growth of retail.
The surge in Commercial Real Estate in Delhi NCR can be attributed to several factors like:
- The NCR’s commercial real estate market has experienced notable growth due to the introduction of important infrastructure projects like the Jewar Airport and the Delhi-Mumbai Expressway.
The region is seeing a surge in business and investment due to these innovative developments, which is further increasing the demand for commercial space.
- Rapidly growing neighbourhoods are also becoming more and more popular as places to live, which is driving up demand for commercial space.
- Businesses are now forced to look for more flexible and adaptable spaces due to the shift towards hybrid work models, particularly in the IT/ITES sector. This model of co-working has shown to be a major success.
- Mega-shopping centres have also significantly changed the way they are designed to include open areas, which raises the experience factor overall and offers office space inside the complex.
These are some of the factors contributing to the CRE market’s boom in Delhi NCR, which is looking like an exceptionally promising venture for CRE day by day.
Investment Opportunities in Delhi NCR Commercial Real Estate Market
The NCR’s commercial real estate market is booming like never before due to the rising demand for co-working spaces, flexible spaces, and high-street retail.
Some of the key trending investment opportunities are:
- The growing need for flexible spaces is one of the current trends in the NCR’s commercial real estate market.
These modern developments combine retail, entertainment, and office space into a single unified structure, offering businesses a flexible and dynamic environment.
- Co-working spaces and high-street retail are also prospering because they meet the changing needs of both consumers and professionals.
- Additionally, the growing need for commercial space has driven developers to look for new locations outside of central business districts, leading them to build commercial properties in the NCR’s satellite towns and suburban areas.
The Future of Delhi NCR as India’s Commercial Real Estate King
- Despite the volatile nature of real estate markets, Commercial Real Estate in Delhi NCR appears promising.
- Across these top seven cities, Delhi-NCR is expected to contribute a substantial 11.6 million square feet, or 31% of the expected supply of retail developments expected between H2 2023 and 2027. For both developers and investors, the region’s strength and potential are indicated by this amazing growth of Delhi NCR Commercial property.
- The city’s strategic location, coupled with increasing urbanization, indicates continued growth. However, potential challenges, including policy changes or economic turbulence, should not be overlooked.
The Commercial Real Estate in Delhi NCR is experiencing rapid growth and presents a wide range of prospects for businesses and investors to capitalise on.
The Commercial Real Estate in Delhi NCR is positioned for exceptional success due to a number of factors, including the growing demand for flexible spaces, the emergence of mixed-use developments, and sustainable rental rates and leasing practices.
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Q1. What factors contribute to the growth of commercial real estate in Delhi NCR?
A. Growth factors for Delhi NCR Commercial property include robust infrastructure, significant foreign investment, a rise in startups, increased urbanization, economic policies, and high demand in the tech and e-commerce sectors.
Q2. What is the future outlook of commercial real estate in Delhi NCR?
A. The future of commercial real estate in Delhi NCR looks promising. Driven by its strategic location and urbanization, growth is expected to continue. However, potential challenges such as policy changes and economic turbulence need to be navigated strategically to maintain the region’s leading position in the market.
Q3. What are the best upcoming investment opportunities in commercial real estate?
A. Fractional ownership and Real estate structure debt are the best upcoming investment opportunities in commercial real estate.
Through Assetmonk, Investors can invest with just Rs. 10 Lakhs in Structured debt backed by real estate and get an assured IRR of 17%.