Gurgaon emerges as NCR’s new Central Business District

As per a recent CBRE report, Gurgaon continues to dominate as a corporate hub with increased investments in real estate by institutional investors and developers. With presence and availability of high quality gated residential communities and stagnation in Delhi’s urban development environment has resulted in over 70 per cent of office leasing making Gurgaon, the new Central Business District.  Over the past three years, while Noida transacted between 1-1.5 million sq ft of gross leasing annually, Delhi was even lower at an average of 800,000 sq ft. Gurgaon in comparison was far ahead with an average gross leasing of 5.5 million sq ft annually with last year clocking a high of 7 million sq ft commanding a 70 per cent share of office leasing in the NCR region. This is driving significant institutional interest (as well as investment commitments) to capture the growth wave of increasing lease rents and high sale prices. Further, increase in such demand is further leading to an increase in working population thereby generating additional demand for housing in Gurgaon.  With over $1 billion of investments by way of land acquisition and financing the overall long term outlook is bullish with commercial office markets in overdrive and emerging areas of Gurgaon offering excellent residential development opportunities. While prime areas of Gurgaon such as Golf Course Road and MG Road are saturated and considered expensive for residential space, emerging areas such as Golf Course Extension, Dwarka Expressway and New Gurgaon offer multiple development opportunities tapping demand from first home buyers as well as investors.  “Investments by institutional investors and developers alike show enhanced confidence in Gurgaon’s future. Future ready trunk infrastructure such as roads, power and water; ready social infrastructure clubbed with affordability has been the key driving factors of the region,” said Anshuman Magazine, Chairman, India and South East Asia, CBRE.  In addition to bullish investors, prominent international developers from China and other neighbouring countries are evaluating Gurgaon as their first market for investment. Reputed developers have joined hands with strong institutional investors to actively acquire strategic land positions within emerging areas of Gurgaon, which is a clear indicator of the expected long term dividends.