Commercial market a preferred INVESTMENT CHOICE
21 December 2013, Times Property
Commercial real estate in the Delhi NCR is turning into smart investment portfolio with developers and investors now turning their focus upon commercial property. TEAM TIMES PROPERTY writes.
Developers and investors are now turning their focus upon commercial property, as these have greater potential for capital appreciation compared to residential property.
Positive trends pushing demand:
The developing commercial set-ups in the Delhi NCR’s micromarkets like Gurgaon, Noida, Greater Noida, and Faridabad are set to regain momentum once the economy revives.
The government, too, is encouraging public-private partnership (PPP) model in infrastructural projects, which is expected to boost the commercial activities in the whole region. Developers and investors believe that the cumulative growth strategy involving contributions from the PSUs and the
private sector will revamp the NCR’s environs, bringing in the much-needed impetus to the sector.
According to realty experts, the impact of the subdued economic sentiment and the rising inflation rate on the realty market, and the attractiveness of a city’s business environment, can largely be gauged by evaluating the health of commercial realty in that city. The popularity of the Delhi NCR as an investment destination can be gauged from the fact that Connaught Place hasemerged as the fourth costliest commercial office market in the world.
Impact of improving infrastructure: New and forthcoming growth corridors along Gurgaon and Noida like Yamuna Expressway, Noida Expressway, and Dwarka-Gurgaon Expressway have recorded tremendous increase in commercial and residential activities in the past few months and will continue to drive the commercial market activity.
The forthcoming Faridabad-Noida-Ghaziabad Expressway, Southern Peripheral Road, and Kundli- Manesar-Palwal Expressway are other major corridors that are registering high-grade commercial development.
Amenities, travel time to commercial districts, connectivity to various parts of the city, and quality of public transport and infrastructure are decisive factors that influence the capital values of developing commercial markets.
Realty players like DLF, Ansal API, Ansal Housing, Assotech Realty, Antriksh, Paras Buildtech, Microtek Infrastructures, Supertech, Amrapali, Gaursons India Ltd, RMS, EMAAR MGF, Shri Infratech, Cosmic, Premia, etc, are coming up with new commercial projects in the NCR.
DLF recently launched Prime Towers in Okhla, which offers a smart opportunity for those looking to expand or relocate their business premises to south Delhi. Prime Towers, with eight floors and spread over 4.82 acres, promises spacious and ultramodern freehold units that are suitable for big retail brands, MNCs, franchisee owners, banks and financial institutions, salons and spas, boutiques, restaurants and cafes.
DLF is also coming up with projects like The South Court (Saket), DLF Towers (Jasola), The City Centre (Shalimar Bagh), and DLF Towers (Shivaji Marg).
Ananta Singh Raghuvanshi, executive director (marketing) of DLF Universal Ltd, says: “The commercial and retail sector in Delhi has moved ahead, shedding off its traditional image and evolving into a more shopper-centric destination. It has made a paradigm shift from being a row of shops located on the roadside to moving into showrooms in a four-walled structure. Commercial space scenario is a bit different. People like to buy commercial space which is either ready to move in or will be ready soon and we are coming up with various commercial projects to meet this requirement. Considering the potential growth and profits, commercial space is a preferred investment choice for investors.”
RMS Group is developing RMS Plaza in Tronica City. Sanjiv Chaudhary, director of RMS Group, says: “Delhi is becoming cramped and costly, so investors are flocking to new destinations in the NCR where they can put money in forthcoming projects like malls, nursing homes, office space, and entertainment and retails space. With so much infrastructural development happening in Tronica City, along with major connectivity projects, the area offers immense potential to investors.”
Rakesh Yadav, MD of Antriksh Group, says: “Investing in office and commercial space has always been more rewarding than in residential properties. The returns are very lucrative, especially if the location and facilities are up to the mark. With commercial market in Tier II and Tier III cities registering impressive growth, it is the best time to put money in the commercial projects there.”
Commercial activity in the Delhi NCR, apart from central and south Delhi, is mainly concentrated in Gurgaon and Noida—the two prominent suburban cities flanking the national capital.
Commercial market in Noida-Greater Noida:
The ongoing commercial projects here make perfect business sense for corporates, even entrepreneurs, wanting to make a smart move to Noida Expressway and Noida Extension (Greater Noida West).
A number of commercial projects like 5-star hotels, malls, and offices are coming up in Greater Noida West, like Amrapali Group’s Amrapali Techno Park, Premia Group’s Premia Ist Corporate City, Earth Infrastructures’ Earth Commercial Park, etc.
Several commercial projects have been launched, some already operational, along the sectors of Noida Expressway like Sectors 94, 96, 97, 98, 105, 108, 124, 125, 126, 127, 132, 135, 136, 142, 143, 144, 153, and 154-these have great potential to give good returns to investors.
Shri Infratech has recently launched a state-of-theart commercial project, a part of its 580-acre integrated township, Vedic City, near Greater Noida. Manoj Dwivedi, CMD of Shri Infratech, says: “Both residential and commercial segments are complementary to each other. Given the lack of commercial development around Greater Noida, it’s a huge opportunity for us. We are banking big on this segment and have planned some dedicated commercial projects in Vedic City.”
R K Arora, CMD of Supertech Ltd, says: “Commercial property is becoming a lucrative segment for developers and investors, which is evident from the increasing footfalls and business volumes in almost all the malls and entertainment centres. These malls have replaced the conventional market place and have lent a new concept and meaning to the purchase needs of modern urban Indians.”
Cosmic Group has launched several commercial projects like Cosmic Corporate Park, Cosmic Corporate Park 140, Cosmic Corporate Park 154, and Cosmic Cruise in different locations of the NCR. These commercial projects are each over several acres with office space, IT plots, studio apartments, etc, and promise 7-star facilities.
Ashok Gupta, CMD of Ajnara India Ltd, says: “It is always advisable to invest in office or commercial space as their rental values are way higher than what you get in residential property-even the capital appreciation is better. The only thing to be kept in mind is the time of investment. Properties in construction phase are the safest deals as tenant tension is not there.” Ajnara has several commercial projects across the NCR.
Prithvi Raj Kasana, director of Morpheus Group, says: “Increasing globalization, and the resultant high returns, has increased the demand for commercial property. The mall culture, too, has significantly added to the demand for luxury retail space and the NCR is amongst the most favoured destinations. Also the growing number of middle-class investors
who are not averse to trying their hands in the property market,along with professional real estate investors, has further fuelled this segment.”
Commercial market of Gurgaon: Locations like Golf Course Road, Golf Course Extension Road, Dwarka-Gurgaon Expressway, and the main Gurgaon-Sohna Road have registered great demand for state-of-the-art commercial properties. Top developers like DLF, Unitech, Ansal Group, Vatika, Vipul, Hines, and Paras have come up with world-class commercial projects here.
Ansal Housing is coming up with a project, HUB 83, which offers retail and office space, while Ansal Town Walk offers high street retail and corporate spaces on Dwarka-Gurgaon Expressway in Sector 104.
Paras Buildtech has launched Paras Square, a mixed-use project with commercial space. The group has already delivered two commercial projects, Paras Twin Towers and Paras Downtown Centre in Gurgaon. Paras Trade Centre and Paras Trinity are in construction stage, while Paras Square, the sole mixeduse project, will come up next to Golf Course Extension Road in Sector 63A.
Harindra Nagar, MD of Paras Buildtech, says: “We were early to spot the potential in commercial segment and have majorly developed such projects in Gurgaon and Zirakpur (Punjab). Presently, our focus is on Gurgaon as there is a great and continuous demand in this segment due to the presence of MNCs and an array of economic activities here.”
Microtek Infrastructure has lined up four commercial projects in New Gurgaon area, which are in close proximity to Dwarka-Gurgaon Expressway.
Ajay Aggarwal, MD of Microtek Infrastructure, says: “Gurgaon has exhausted its space and new projects have shifted to the developing sectors of New Gurgaon. Development authorities like Huda and MCG have new action plans for infrastructure development of this part of Gurgaon. That is why wider connectivity roads are being laid out; notice how Dwarka-Gurgaon Expressway is being developed on a par with international standards. With a number of residential projects either launched or completed here, there will be a big need for commercial space to support the modern urban lifestyle. We have lined up several commercial projects to fill the gap.”
DEVELOPERS AND INVESTORS BELIEVE THAT THE CUMULATIVE GROWTH STRATEGY INVOLVING CONTRIBUTIONS FROM THE PSUS AND THE PRIVATE SECTOR WILL REVAMP THE NCR’S ENVIRONS, BRINGING IN THE MUCH-NEEDED IMPETUS TO THE SECTOR
THE POPULARITY OF THE DELHI NCR AS AN INVESTMENT DESTINATION CAN BE GAUGED FROM THE FACT THAT CONNAUGHT PLACE HAS EMERGED AS THE FOURTH COSTLIEST COMMERCIAL OFFICE MARKET IN THE WORLD