Delhi-NCR commercial real estate rises 5% in Q1 of 2021

Commercial

Even in midst of the uncertain nature of the Covid-19 pandemic, India’s backbone sector of the economy Рthe real estate is showing promising signs of withstanding the growth. As per Moneycontrol reports, the commercial real estate absorption rates in Delhi-NCR have recorded a stable 5% increase in Q1 of 2021 to reach 1.07 million sq ft of spaces leased across various satellite cities.

Among the cities of Delhi-NCR, Noida accounted for 55 percent of the net absorption rates to emphasize its status of being the main business district of Delhi-NCR. The millennial city Gurugram came in second by registering a share of 38 percent under its aegis due to several big-ticket-sized transactions and leasing activity happening in the vicinity.

According to the report, the major sectors that dominated the lease transactions in Delhi-NCR are IT/ITeS, BFSI (Banking and Financial Services), Healthcare, Legal and Consulting firms, among a few other minor sectors as well. Several major players in the commercial sector had chosen to relocate their businesses to reduce costs and also get fresh office spaces at attractive lease terms.

The survey included the perspectives of major real estate players who responded to the positive windfall of commercial real estate. Major real estate developers of Delhi-NCR responded that their real estate stock value stood at surprisingly surging levels hinting at the positive response of the market. Among the cities, Noida and Gurugram remain the most preferred destinations for investment as well.

Both the cities have taken great leaps in terms of development and infrastructure which has triggered the huge demand for properties in Noida and Gurugram. The real estate pundits agreed that Noida and Gurugram have fueled the momentum of commercial growth in the capital city, hinting at the huge investment opportunity awaiting in the city for prudent investors to act immediately.

Making sense to the statement, the vacancy rate of Delhi-NCR is 29.3 percent at the end of the quarter. Vacancy levels have shot up in selected prime business districts presenting huge investment opportunities for investors. The rents remained stable with real estate developers offering huge relaxations on payment plans.

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