Sunil Sisodiya, founder & MD, Geetanjali Homestate
With Gurugram having a majority share in Delhi NCR’s total sales with around 37%, the scope of commercial automatically goes up. In fact, Gurugram will complete half of the Delhi-NCR region’s commercial supply of more than 8 million sq ft. Not only for the Grade A office space, where Gurugram’s share is 38% in the first quarter of 2021 in Delhi NCR, but the demand for SCOs is also high. There has been a prolific demand and under-supply of commercial spaces in the post-pandemic scenario. Much of the demand can be attributed to the handsome returns that commercial investment brings.
No doubt, the city is already a commercial hub and a home to industrial businesses, BPO behemoths, prominent IT firms, and Fortune 500 firms. However, new infrastructural developments in the city are leading to an increased scope of real estate growth. As the population is expanding to newer areas of Gurugram, the demand for commercial spaces in these upcoming areas is also contributing to robust commercial segment growth.
The most active micro-markets in the Delhi-NCR region have been Golf Course Extension Road, Cyber City, Sohna Road, Udyog Vihar; Golf Course Extension Road had an exceptional demand and supply share in H1 2021 because of good infrastructure development, connectivity, and relatively affordable rents compared to other micro markets. These micro-markets are appealing to smart investors with steady new launches in commercial real estate.
The city has also benefitted from the requirement for de-densification, which take into account social distancing standards and health measures, resulting in the demand for larger and higher-quality commercial spaces. With the expansion of Gurugram to areas that were earlier called outskirts has further helped the segment. Areas such as Sohna, Sohna Road, Manesar, etc, are among the reasons behind the V-shaped recovery of commercial real estate in the city. Overall, commercial real estate is proving to be a far more tempting investment option for both individual and institutional investors.
The market here is also witnessing newer trends to keep the interest of the buyers or investors alive; pre-rented units, for example, are ensuring a profit for investors. Health, cleanliness, and wellness considerations would invariably lead to industry consolidation in favour of organised developers. More developers will introduce products that provide a hygienic atmosphere and various wellness features to appeal to health-conscious customers; Gurugram fares well due to the availability of Grade A buildings that promise profit for the investors. Commercial real estate in the city evolved with the requirement of the time; one such example is the entry of players with fractional ownership in CRE, opening up the market to the investors with limited means.
According to Savills – Asia Pacific Investment Quarterly Q2 2021, commercial office assets remained popular during Q2/2021, garnering a 40% share of the investment pie; it emerged as the safest investments option promising good rental returns and high long-term appreciation compared to residential investments. And, Gurugram is no exception.