COMING OF AGE FOR NOIDA – NCR’s New Millennium City
The Chief Minister of Uttar Pradesh (UP)—Yogi Adityanath created an absolute flutter with his Mumbai visit this week, where he courted industrialists and film stars to move business to his state, promising facilities better than anywhere else in the country. His visit to Mumbai months after announcing setup of Film City near Noida similar to Mumbai and the grand plans around Jewar International Airport, has set the real estate market abuzz that Noida could well be on its way to become a new millennium city and give the older Gurugram a touch of competition. One of the two key satellite cities of Delhi, Noida is witnessing a resurgence of interest and development that promises to bring it out of the shadow of its hotshot neighbour.
Short for New Okhla Industrial Development Area, the city founded in the 1970s has traditionally trailed Gurugram when it comes to attracting Fortune 500 companies. All that seems to be poised for a change. Noida is now in the reckoning as a major office market, thanks to low rentals and better infrastructure. Many large developers are committing capital to develop and upgrade new office buildings, drawn by lure of an already robust infrastructure and the proposed Jewar airport, which with the personal attention of UP Chief Minister, Yogi Adityanath seems to be on the fast track. In fact Yogi-government’s push for attracting foreign investments, combined with higher rentals in Gurugram and a pandemic need to preserve the bottom line, present a ready cocktail for large occupiers to look seriously at Noida.
Developers with pan India footprint like Embassy and Brookfield were already in the Noida office market with compelling grade A office space offerings. Others with reasonable regional heft like Max Estate, BPTP, Bhutani Group are now in the queue and new supply is lined up to hit this competing NCR office hub, in quick succession.
As per a recent report by global property consultant Knight Frank, unlike the trend witnessed in the past 7 years, more office space was leased in Noida than in Gurugram during the first half of 2020, mainly due to availability of new supply at much lower rentals as compared to Gurugram’s key locations and superior connectivity to the capital, Delhi. The DND Expressway with sprawling sectors coming up on either side, better planned sector roads, uninterrupted power supply and the metro connectivity make it a serious competitor to the millennium city. The Knight Frank report also notes that demand for office spaces has been pushed up in Noida mainly due to high rentals in Gurugram’s established office space locations such as DLF Cyber city, Golf Course Road, M.G. Road and Udyog Vihar.
The only thing Noida lacked was an airport and with the work for Jhewar in progress and flight operations expected to commence from 2024, realtors are betting big on the upcoming airport.
RUSH FOR SETTING UP COMMERCIAL SPACES
Earlier this week, Max Group’s realty arm Max Estates announced commencement of a new commercial project in Noida having 7 lakh sq. ft with an investment of Rs 400 crore. The project will mainly comprise office space. It is the third commercial project of Max Estates, which is part of Max Group’s listed entity Max Ventures & Industries Ltd (MaxVIL).
Bhutani Group, another Noida based real estate developer with major focus on the commercial segment, announced in September 2020 that they have almost completed construction of 20 lakh sq ft of Grade A offices and over the next 5 years they will deliver additional 140 lakh sq ft of commercial space in Noida and Greater Noida.
BPTP’s project “Capital City,” a Grade A mixed use development of about 7 lakh sq ft is all set to welcome corporate tenants.
Candor Techspace by Brookfield Properties is also likely to bring additional ready towers in its campuses in 2021 and 2022.
World Trade Center (WTC) Noida a mixed-use commercial complex that has office spaces, service apartments, and recreational spaces is on verge of completion. According to reports, WTC Noida has collaborated with the Uttar Pradesh Government for the first Mobile Open Exchange (MOX) Zone in the country, acting as a catalyst in enabling the growth of the mobile and allied sectors in the region.
Besides that, earlier this year in March software giant TCS secured approval for IT/ITeS Special Economic Zone (SEZ) in Sector 157, Noida. TCS is setting up an over four million sq-ft IT park spread over a 50 acre plot in Noida. Similarly DLF is also developing another SEZ in Noida.
THE UPCOMING JEWAR AIRPORT
In October 2020, the Noida International Airport Limited (NIAL) and Zurich Airport International AG inked a key agreement allowing the Swiss developer to begin work at the site of the upcoming Jewar airport.
The “concession agreement” for the Greenfield airport, estimated to cost Rs 29,560 crore, was inked between the Uttar Pradesh government’s agency and the Yamuna International Airport Private Limited (YIAPL), a special purpose vehicle floated by the Zurich Airport for the project.
As per reports, construction of the airport will start next year and flight operations are planned for beginning of 2024.
BID TO ATTRACT GLOBAL INVESTMENTS
The Yogi Adityanath-led BJP government in Uttar Pradesh is aiming to top the list of ease of doing business ranking among states. It currently occupies the second position.
According to Sidharth Nath Singh, minister in the Yogi-government, Uttar Pradesh has come up with new policies with focus on ‘ease of doing business’ particularly in food processing, electronics, textiles and pharmaceutical sectors and as a result, the state jumped to number two position, from number 12, in terms of ‘ease of doing business’. Amid exodus of companies from China, Uttar Pradesh is hoping to attract a few of them to set shop in the state.
AND A FILM CITY
If all goes as per the plans announced by Yogi Adityanath, Noida will become a glamorous city too. The state government has announced to set up a film city similar to Bollywood, in about 1000 acres. During his visit to Mumbai he met film producers, actors, directors and other technical people working in the industry and took their inputs to develop a world class film city.
The proposed film city is expected to come up a few kilometers from the under development Jewar international airport, giving the region that added touch of star power which could add some magic into an already compelling story.
Written By Ashwini Kumar Sharma
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