Investment Opportunities in Noida Commercial Real Estate

Noida, often referred to as the New Okhla Industrial Development Authority, is a satellite city in the state of Uttar Pradesh. The New Okhla Industrial Development Authority oversees this industrial region, which is part of the NCR.

Noida is unquestionably one of India’s most modern and developed cities. It holds the top spot in India for a number of important metrics. In their “Best City Awards,” ABP News named this city the greatest city in Uttar Pradesh and the finest city for housing in all of India.

With about 50% green cover, Noida is noted for having the largest percentage of forests of any Indian city. Additionally, among India’s medium-sized cities, it has been rated as the cleanest city. This is significant for the city’s commercial sector because these rankings reveal a great deal about the infrastructure and growth of the city.

Noida is a center for IT solutions and software development, and more businesses are opening there every year. Samsung, a well-known manufacturer of electronics, reportedly invested 50 billion rupees in Noida as part of the Make in India program.

The aforementioned factors make Noida one of the greatest sites to launch a new company, and the city has a high demand for real estate.

Top Reasons for Real Estate Investment in Noida

Here are a few justifications for making an investment in a Noida business property.

Transportation Availability

Buses, metros, trains, and other modes of public transit are all well-developed in Noida. Rail and vehicle services are available in all significant areas of the city.

The Delhi Metro extends into the NCR area, and the Blue Line, which runs from Dwarka to Noida, has a total of 44 stops. Residents can use the Delhi Metro to travel to any location in Delhi from Noida. Also, easily accessible from Noida are the railway terminals in New Delhi and Old Delhi.
The Indira Gandhi International Airport, which is 23 km distant, is the closest airport to this city.

Digital Hotspot

One of India’s main centers for the development of software, mobile applications, and BPO services is Noida. Over the past few years, this city has become overrun with MNCs, tech start-ups, and prominent firms’ offices and operational hubs. HCL Technologies, TCS, Wipro, Dell, Tech Mahindra, IBM India, and more leading companies have offices in Noida.

Top firms favor this location due to its close proximity to the national capital and strong connectivity. In addition, the government has established a number of IT parks in and near Noida to promote additional business investment.

Educational Hub

Numerous prestigious educational institutions that have grown concurrently with the cyber industry over the past few years are located in Noida. As a result, there is a large population of students and educators in this city. Additionally, accessibility to a major commercial area draws people to these educational institutions.

Availability of Working Professionals

Noida welcomes a sizable number of people who travel to this city in search of employment thanks to the extensive cyber sector. As a result, there is always a high demand for apartments, restaurants, and other businesses. The possibility for commercial real estate in this metropolis is enormous as a result.

Opportunities for Commercial Real Estate Investment in Noida

A great place to invest in commercial real estate is Noida. The areas listed below are some of the best in this city. To achieve the best results, you can think about investing in these areas.

Sector 110

Through the Noida-Greater Noida Expressway, this area of Noida is well connected to the majority of the city, and it is also quite close to the Special Economic Zone (SEZ) of Noida. As a result, the neighborhood is well-liked and offers a lot of potential for rental revenue, with a minimum rental yield of $15,000 per month for a two-bedroom apartment.

Due to its ideal location, this area’s property values are likewise rising. Hospitals, stores, and educational institutions are all nearby in Sector 110. The average cost per square foot for properties in this area is roughly $5,800.

Sector 100

In the middle of numerous of the city’s business hubs is this region of Noida. This neighborhood is quite close to Noida SEZ, Advant Navis Business Park, and a few more commercial areas. It is also close to locations like Yatharth Super Speciality Hospital, Jaypee Hospital, and Amity University.
Sector 100 is always packed and a highly sought-after location for commercial companies because it is also near to the Sector 104 business district. Property prices in this area have risen by 17% year over year. Sector 100 houses typically cost around 7,400 rupees per square foot.

Things to Think About Before Purchasing Commercial Real Estate in Noida

You should take into account a number of factors that can expand your potential earnings when investing in commercial real estate in Noida. Before buying commercial real estate in Noida, make sure to look at the aspects given below.

Demand of the Location

A property’s location plays a significant role in determining its demand and price. A property in the city’s center or close to flyovers and busy roadways will be in high demand. Consequently, compared to other properties, it will offer higher returns. As a result, you ought to make an investment in a business property in a desirable part of the city.

Infrastructural Development

Commercial premises need an urbanized infrastructure with contemporary facilities. It will be more in demand among businesses if you invest in a commercial property that is close to key amenities such as electric supply, water supply, transportation, etc. So, take into account the growth of the local infrastructure before making a property purchase.

Transportation Network

It is important to pick a site with adequate access to roads, railroads, and airports. One of the most important characteristics that customer search for in commercial settings is this. As a result, you must pick a location with adequate connectivity and a robust public transportation system.

Reputation of the Builder

Due to the presence and connections of the developer, a commercial property constructed by a reputable builder has a greater chance of capital appreciation. People rely on an experienced builder’s goodwill when choosing a commercial space. Therefore, take this into serious consideration when searching for commercial real estate..

Safety

When it comes to the real estate market, safety is one of the most important concerns. Commercial properties need to have the basic security precautions in place, as well as access to the neighborhood’s security and monitoring infrastructure. Therefore, when choosing commercial real estate, you must keep this goal in mind.

RERA Verification

You must examine a property’s registration and other information from the state’s Real Estate Regulatory Authority (RERA) webpage before choosing it for commercial real estate investment.

Under the Real Estate (Regulation and Development) Act of 2016, RERA organizations were established. All real estate participants in a state are required to register their projects and report on their progress on a regular basis. Therefore, you should always examine the information about your chosen Noida home on the RERA Uttar Pradesh official website.

Stamp Duty in Noida

Below are the various stamp duty rates that apply to both men and female.

Fees for Registration in Noida

Before determining the total cost of your commercial real estate investment, you should take any additional expenses into account. The registration fees for single, married, and joint purchases in Noida are:

What are the projections for the Noida commercial real estate sector?

With tremendous growth in the real estate sector, Noida has developed as the state’s financial hub. The excess population of Delhi, Gurgaon, and other nearby regions are exhibiting interest in purchasing properties in Noida because it is part of the NCR area.

As a satellite city with its own development authority, Noida has seen far greater infrastructure and connectivity development than other areas. This is the main reason why Noida is being highlighted as a high-return real estate investment opportunity.

Combining all of the city’s small and major housing sectors, it was reported that residential properties in Noida had grown by almost 22% in 2022. A well-known Real Estate Investment Trust (REIT), Brookfield India, leased more than 3.32 lakh square feet of office space in this city in the recent quarter.

Additionally, the State Government places a lot of emphasis on making Noida an ideal industrial hub in India. The Dadri-Noida-Ghaziabad Investment Region (DNGIR) will soon include a number of new projects, according to the development authority in Noida. The government has a “Master Plan 2041” that is anticipated to be developed in 4 phases to finish their ambitious objectives for growth in Noida.

This illustrates the breadth of Noida’s real estate potential in the upcoming years. In a few years, Noida’s potential for commercial real estate is anticipated to soar. To maximize your profits, you should start investing in Noida commercial real estate as soon as possible.

Compared to other asset classes, commercial real estate

You can invest in a variety of asset classes in addition to commercial real estate to get significant returns on your money. However, each asset class has unique characteristics and dangers; as a result, you should read the information below to determine which option is best for you.

Bonds Versus Commercial Real Estate

Bonds are a class of asset that offers investors moderate rewards at modest risks. Parking your surplus cash somewhere to generate fixed interest is a smart move. Commercial real estate, in contrast, provides somewhat larger returns.

Check out our homepage for a list of the best bonds in India if you want to put your money in highly rated bonds. Simply sign up to begin investing.

Commercial Real Estate vs Gold

A reliable asset with low risks and moderate returns is gold. Gold’s returns, however, solely result from asset value appreciation. Investors seeking larger profits at lower risk often favor commercial real estate. Rent from commercial premises is another source of extra income.

Commercial Real Estate vs Stocks and Mutual Funds

When compared to other asset types, stocks and mutual funds can provide the largest returns. They do, however, also carry a high risk factor because to their extreme volatility brought on by market influence. In contrast, commercial real estate comes with modest risks and somewhat high rewards when compared to shares and funds. Additionally, stocks give your portfolio additional diversification.

Commercial Real Estate vs Residential Real estate

Compared to commercial real estate, residential real estate gives lesser profits. In contrast to commercial properties, it also bears fewer hazards. Contrarily, commercial properties are more in demand and provide more prospects for extra income.

The assets previously discussed are compared to commercial real estate in the table below based on returns, liquidity, risk, volatility, and ticket price.