NCR Office Absorption Hits 3-Year High: Where Should Commercial Investors Look?
Commercial7 min read2 December 2024

NCR Office Absorption Hits 3-Year High: Where Should Commercial Investors Look?

Arjun Varma

Arjun Varma

Commercial Real Estate Head

A to I Infra

The National Capital Region's commercial real estate market has posted its strongest performance in three years, with gross office absorption reaching 12.8 million sq.ft. in the first three quarters of 2024.

Top Performing Micro-Markets

1. Gurugram Golf Course Extension Road: Premium Grade-A offices, occupancy above 95%, rentals at โ‚น120โ€“145/sq.ft/month

2. Noida Sector 62/63: IT and ITES hub, high demand from mid-market IT companies, rentals โ‚น65โ€“85/sq.ft/month

3. Aerocity (Delhi): Hospitality-linked commercial zone, seeing massive growth in co-working and MNC occupancy

4. Greater Noida Knowledge Park: Educational institution and tech campus zone, emerging GCC destination

5. Noida Expressway Sectors 125โ€“135: New CBD formation with integrated office-retail-residential clusters

GCC Boom Driving Office Demand

Global Capability Centers (GCCs) โ€” captive units of global corporations in India โ€” account for nearly 40% of all new office leasing in NCR. Companies including Amazon, Infosys, TCS, Wipro, and over 200 MNCs have established or expanded GCCs across NCR.

Investment Opportunity

Commercial pre-lease office properties in these micro-markets currently offer:

- Gross yields: 7โ€“9% annually

- Capital appreciation potential: 15โ€“25% over 3โ€“5 years

- Triple net leases with 5โ€“10 year tenancy agreements

A to I Infra has curated several exclusive commercial investment opportunities starting โ‚น1.5 crore. Contact our commercial investment desk for personalized portfolio recommendations.

Tags

#Commercial Real Estate#Office Space#GCC#NCR#Investment

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