The commercial real estate market in India, especially NCR, is expected to explode in 2023, with some interesting trends that will shape the future for the segment. Delhi-NCR market is now amongst the most favoured when it comes to seeing the some really positive growth, both in rentals and returns of commercial real estate, including retail and office spaces.
- Gurgaon Retail Sale Price to overtake Delhi for the first time in 2023; to touch 2,40,000 sq. ft.
- Retail spaces set to witness an appreciation of 20% – higher than cumulative appreciation in last three years
- Office sale price growth percentage in Noida is expected to be at 14% – a steady trajectory
- The commercial office space price in Delhi expected to grow at 18% approx.
- A-grade office space rentals to go up by 22-25% in Delhi
- Retail rental income expected to breach 15% mark across NCR
Rise Infraventures, in its latest report on Commercial Realty cited that Delhi-NCR Real Estate market is going to witness great appreciation of commercial real estate returns and rentals, in both, retail as well as office spaces.
Delhi-NCR is quickly emerging as India’s real estate hotspot, spurred by rapidly expanding start-ups and MNCs who are eyeing to establish their offices and data centres in NCR. Because of the positive trend, leasing activity is picking up in the region’s commercial real estate market. Besides, the retail sector in Delhi-NCR, experienced a strong recovery in Q2 2022, sparked by new leases and store openings, and an increased demand for office co-working spaces.
The growth trend is more noticeable in Gurugram, where the commercial real estate market is seeing increased investment from prestigious investors, and industry giants, suggesting Gurgaon Retail Sale Price to overtake Delhi Retail Sale Price for the first time in 2023, and expected to touch 2,40,000 sq. ft. While Retail Spaces are set to witness an appreciation of 20%; Retail rental income expected to breach 15% mark; and Office spaces are expected to witness a price appreciation of 18-20% in 2023, highest in Gurgaon.
Talking about Noida, the office market continues to see significant commercial office space take-up, with strong demand from industries like IT/ITES/BFSI, Startups, etc., fuelling the growth momentum.
In Delhi, the commercial retail realty is expected to grow at about 12%, giving it a fresh impetus for the future. A-grade office space rentals are expected to go up by 22-25% due to regained demand. Indeed, goldmine times for investors eyeing great returns from commercial realty!
Talking about the trend, Vishesh Prakash, Head, R&R by Rise Infraventures, shares, “The commercial real estate market is looking buoyant and there is huge demand for acquiring new spaces and renting new spaces. There is upward momentum in both investing and renting in A-grade office spaces and hi-street retail. Also, with demand-supply dynamics in place, segment is gaining traction like never before. Commercial segment has gained impetus post pandemic. For investors and users, it’s a great time to invest and reap long term benefits.”
- Retail spaces set to witness an appreciation of 20%. Which will be higher than cumulative appreciation in last three years.
- Retail rental income expected to breach 15% mark across NCR.
- Office spaces expected to witness a price appreciation of 18-20% in 2023, highest in Gurgaon.
- A-grade office space rentals to go up by 22-25% in Delhi due to regained demand.
- Noida office market continues to see significant commercial office space take-up.