by Vibha Mishra 
India’s real estate sector is undergoing a significant transformation, and the Noida-Greater Noida Expressway is at the forefront of this change. This bustling corridor, located just a short distance from the national capital, is gaining well-deserved attention. It boasts a unique combination of factors, including a growing job market, top-tier residential developments, and an increasing presence of multinational corporations. In this blog, we will explore why Noida-Greater Noida Expressway is a prime location for real estate investment. We will back our insights with data-driven analysis, catering to the discerning Indian real estate audience.
A History of Prosperity and Growth
Noida, officially known as the New Okhla Industrial Development Authority, was not envisioned as merely a satellite city to Delhi. Instead, it was designed to be a thriving hub for industrial, IT, and technological investments. This vision gained substantial traction when Noida was formally established under Sector 3 I of the UP Industrial Area Development Act of 1976. However, it was in the 2000s that Noida truly began to flourish. This growth can be attributed to substantial investments made by both domestic and foreign developers in both commercial and residential real estate.
These developers did not just build housing; they created communities. Their efforts attracted investors and homebuyers, transforming Noida into a dynamic urban ecosystem. People from various walks of life have been drawn to the city due to the promise of high-paying white-collar jobs and a high-quality lifestyle.
A Powerhouse of IT and Business
Noida has rightfully earned its place as one of the largest IT, BPO, mobile application, and software hubs in India. In recent years, this burgeoning city has become home to the offices and operation centers of numerous top-tier companies, tech startups, and MNCs. HCL Technologies, TCS, Wipro, Dell, Tech Mahindra, IBM India, and many others have set up shop here. What sets Noida apart is its consistent leasing activity, with tech firms dominating the leasing landscape.
The city’s strategic proximity to the national capital and superb connectivity via road and metro make it a magnet for these major companies. Furthermore, the government’s proactive approach in establishing IT parks in and around Noida has further fueled commercial investments. The city has become a magnet for companies looking to tap into India’s vast talent pool and business potential.
According to the CBRE Q23 report, let’s explore the data research, specifically focusing on Noida’s commercial real estate landscape.
Noida-Greater Noida Expressway Office Space Supply and Absorption: This data describes the supply and absorption of office spaces in the Noida-Greater Noida Expressway area. It shows that there is a consistent high supply of office spaces available quarter after quarter. However, the absorption of these spaces, which means the rate at which they are rented or leased by businesses, is relatively lower during the same time frame. This trend raises the question of why there is a disparity between supply and demand.
Stable Office Rentals: Despite the high supply of office spaces, the rental prices have remained stable over time. This suggests that there is growing demand for quality office spaces, and businesses are willing to pay competitive prices for them. This is noteworthy because in a market with an oversupply of office spaces, one might expect rents to decrease due to increased competition.
Factors Influencing Demand: The data points to several key reasons behind these trends. One significant factor is the shift in working patterns due to the COVID-19 pandemic. Many MNCs have adopted a work-from-office approach, leading to an uptick in the demand for office spaces as companies return to in-person operations.
Dominance of IT Sector: The data indicates that the IT sector has a clear dominance in the office space market, with 100% of the available supply dedicated to this industry. In contrast, the supply of office spaces for Non-IT and Special Economic Zones (SEZ) is at 0%. Understanding this segmentation is crucial for investors as it helps them target their investments effectively, especially in the context of the IT sector’s strong presence.
Distribution of Office Space Absorption: The data also breaks down the absorption of office spaces by different sectors. Within the absorption data:
- The IT sector accounts for 49% of the total absorption.
- Non-IT sector accounts for 42%.
- The SEZ sector accounts for 9%.
This information highlights the distribution of demand across different industry segments, with the IT sector leading the way in terms of office space absorption.
Industry-Specific Absorption: Within the IT sector, the data further specifies the industries that are absorbing office spaces. Notable statistics include:
- Technology companies account for 21% of the total absorption.
- Aviation companies account for 17%.
- Flexible space operations (likely referring to co-working or shared office spaces) account for 14%.
Understanding which industries are absorbing the most office spaces can be crucial for investors looking to make informed decisions about their investments.
Medium-Sized Deals Dominating Absorption: The data also suggests that medium-sized deals dominate the absorption of office spaces. This means that businesses are often leasing or renting office spaces of a certain size range. This information is vital for investors as it helps them determine the size of properties they should consider for investment.
The easy flow between Noida Expressway and Yamuna Expressway, leading to the upcoming Noida International Airport (Jewar Airport), is expected to create a lot of buzz along Noida Expressway. This connection is likely to raise property prices and boost the demand for real estate in the area.
In conclusion, the real estate market along the Noida-Greater Noida Expressway offers a highly compelling investment opportunity. It is enriched with a history of remarkable growth, a flourishing IT and business sector, and the promising prospect of the Jewar Airport, all set to elevate property values. Furthermore, the commercial real estate sector, with its flexibility, cost-effectiveness, and contemporary work environments, is tailored to meet the diverse needs of businesses.
With its strategic location, a rapidly evolving business ecosystem, and the assurance of future developments, the Noida-Greater Noida Expressway emerges as a prime destination for real estate investment.
As India’s real estate scene keeps changing, Noida stands out as a great place for people looking to make good investments and earn more money. The growing need for office spaces is boosting the business sector here, which makes it even more appealing for folks who want to invest
Explore exciting investment opportunities on the Noida Expressway with the recent introduction of CRC The Flagshig and City Center 150. If you’re on the lookout for top-notch retail and commercial properties that promise excellent returns, these two developments are tailor-made for savvy investors like you.
If you’re on the lookout for office spaces in Noida or considering an investment in Noida’s commercial real estate, you can get in touch with My Real Estate Services. Our expert team is here to assist you in making smart real estate choices. Your journey towards real estate success begins here.
