The office market continues to see significant commercial office space take-up, with strong demand from IT/ITES, BFSI, and law companies fueling growth momentum and demonstrating the city’s strong commercial growth.According to surveys, the office market in Delhi NCR witnessed increased net absorption quarter-over-quarter in Q1 2021. It was no surprise that Noida contributed more than half of the net absorption, leaving Gurugram well behind. Over the years, Noida has established itself as a bustling destination for office spaces, backed by strong infrastructural development.
Noida has surpassed other cities in terms of development and infrastructure and remains a popular destination. The office market continues to see significant commercial office space take-up, with strong demand from IT/ITES, BFSI, and law companies fueling growth momentum and demonstrating the city’s strong commercial growth.
Surprisingly, according to the JLL Office Market Update – Q1 2021 study, the total office market in India experienced a net absorption reduction of 33% quarter-on-quarter in Q1 2021. (Q-o-Q). Even though 2020 ended on a high note, there was still concern about the return to normalcy in the market. Occupants maintained a cautious attitude, focusing on reevaluating their real estate portfolios and long-term commitments.
To make matters worse, rising COVID-19 cases in the second half of March prompted occupiers to halt and postpone their real estate selections once more. Net absorption was boosted significantly by pre-commitments in new completions. In the first quarter, 31% of new launches were previously pre-committed. Leasing volumes in Delhi NCR increased somewhat from 1.9 million sq ft in Q4 2020 to 2 million sq ft in Q1 2021.
Occupiers keep exploring their realty portfolios and are embracing solidification and advancement techniques to justify space required while limiting expenses. The Noida market stayed up with the market necessity combined with serious costs contrasted with different urban communities of NCR made the city stand apart from the rest. The leasing momentum in the impending quarters will primarily rely upon the third flood of COVID-19 cases. Nonetheless, call attention to a couple of things give certainty that there is good reason to have hope. The expanding participation in workplaces before the third COVID-19 wave bears declaration to the certainty and responsibility of corporates to return to work from the office. It is significant that landlords keep on being open to the requests of inhabitants and offer adaptable choices, as far as space is just as worthy.
As of now the interest for good office property, which can yield great rental returns, is on the ascent on account of the coming up of REIT posting in the Indian market and as a result of the expanding number of necessities coming from the new work alternatives. With regards to commercial real estate investment in Delhi-NCR, Noida is the best recommendation.
The office areas (Sector 62 and 63) and Noida-Greater Expressway belt are particularly a dynamic zone. The nature of physical and social infrastructure in this zone is undeniably better than that of other regions. It is connected with Delhi, Gurugram, Faridabad and Ghaziabad through road network and the metro rail. The Noida International Airport is additionally in progress. At present, property costs in this locale are as yet unobtrusive, subsequently flagging remarkable investment benefits.
(By Gurcharan Singh, Director, Maasters Infra)
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