According to reports, the Delhi-NCR market may witness steady growth next year although things were quite sluggish at least till the first quarter of 2017. The realty market was witnessing a major slump in the first half of the year post demonetization. Then, with RERA and GST and also the Benami Transactions Prohibition Act, sales volumes went down hugely. However, the commercial real estate market has picked up steadily across India with approximately 34 million sq. ft. leased which does not include pre-commitments and renewals. The NCR accounted for 18% of this market which is approximately space of 6.25 million sq. ft.
Leasing volumes are expected to be maintained in 2018. Demand for Grade-A office spaces is majorly spurred by leading IT and ITeS companies and also manufacturing, BFSI, engineering and co-working organizations. Gurgaon is one of the most preferred commercial destinations in the NCR and accounts for a whopping 63% of total leasing. This is majorly IT and ITeS organizations as per reports and there may be major residential activity spurred by the upcoming SEZs (Special Economic Zones) in Gurgaon. Noida is also witnessing a slight pick-up in transaction volumes and there was approximately 24% contributed by Noida to leasing volumes. Rentals and property prices are mostly lower in Noida in comparison to Gurgaon.
Markets like Udyog Vihar, Cyber City and National Highway 8 should witness growth in Gurgaon both from a commercial and residential perspective. Aero City in Delhi is another major market for offices along with Noida Expressway and Sector 62 in Noida. Golf Course Road will become an even more premium market along with Cyber City. Golf Course Extension Road will continue to get healthy residential supply volumes and should witness handsome growth in the near future.
The National Highway 8 is being widened and this will definitely boost real estate projects along this entire stretch. The finishing of the Hero Honda Chowk Flyover will also boost real estate majorly in 2018. There is the plan for decongesting traffic across four key National Highway 8 junctions, namely Signature Tower Chowk, IFFCO Chowk, Hero Honda Chowk and Rajeev Chowk. This will boost these micro markets and residential supply may also increase hugely. These infrastructural developments are happening very fast and multiple such initiatives may witness completion by the first quarter of 2019. The commercial real estate market may witness excellent growth in the NCR next year and this will have a positive rub-off on the residential real estate market as well.