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Noida-Commercial Market10 - 03v1
Noida-Commercial Market10 - 03v1
Summary Slide 1
Noida Market Summary: Improved leasing activity lead to drop in vacancy level
from 23% to 20%
Grade A office market in Noida (Values in mn sqft saleable)
Map showing Noida Submarket
Annual
Key locations Ready Supply Vacancy Under Absorption New
as on Dec-2021 % construction (Dec-20 to Completion
Dec-21)
• The vacancy rate decreased to ~20% at the end of Dec 2021 as the leasing momentum increased post covid.
• Fresh leasing led the demand during the year followed by term renewals and pre-commitments demand increased
signalling confidence of occupiers to carry on with their footprint expansion. The year was also quite impressive from
enterprise seats take-up in co-working spaces of flexible workspaces in annual leasing volumes, seats take-up grew by
5X over that recorded in the previous year. Office demand was led by large spaces being leased in investible-quality
stock with superior maintenance and hygiene standards.
Vacancy %
25.49 31.63 32.68 19%
saleable
25 19% 20%
19.40 20.83
20 19.07 15%
15
10%
10
5 2.76 5%
0.32 0.66 1.11 1.22 0.62 0.37 1.13 1.74 0.86 1.28 1.16
0 0%
CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2021
Noida Expressway (Sector 135) 19.52 19.57 23.11 23% 17% 29%
Noida Ext (Sector 62) 7.95 7.95 8.19 17% 17% 19%
3
Activity led by IT/Ites, Pharma and Consulting
IT/Ites
Pharma & 53%
Healthcare
17%
Manufacturing
2%
Table Showing recent transaction in Noida Market
Prevailing Lease Rate
Occupier Building Name *Type Area Quarter Sector in the project
Samsung Candor Techspace New Lease 3,57,000 Sep-21 IT/itES 55*
Yes Bank Max Tower New Lease 62,500 Dec-20 Banking 120
Cyril Amarchand
Mangaldas Max Tower New Lease 80,000 Mar-21 Law Firm 120
DBS Bank Max Tower New Lease 7,300 Mar-21 Banking 120
EY Advant Navis park New Lease 180,000 Mar-21 Consulting 45
Optum Oxygen New Lease 100,000 Jun-21 Pharma& Healthcare 55
SmarWorks World Trade Centre New Lease 200,000 Sep-21 CoWorking 55
*Samsung deal happened at Rs.55 psf per month
Source: https://www.business-standard.com/article/companies/samsung-leases-357k-sq-ft-noida-brookfield-floors-for-rs-2-cr-month-121092600963_1.html
Lease rate variation across markets
Vacancy level and lease rental are back to Pre-Covid time.
Table showing Pre-Covid, during Covid and Post Second Lock Down Rental Trend in Business District of Noida
Grade A Other Grade
Pre Covid (Dec-19) Mar 20-Jun 21 June 21-Dec-21 Pre Covid (Dec-19) Mar 20-Jun 21 June 21-Dec -21
Noida 81 92 92 81 92 92
Noida Expressway 58 57 58 58 57 58
(Sector 135)
Noida Ext (Sector 62) 59 59 59 59 59 59
Grand Total 61 67 68 61 67 68
Table showing Pre-Covid, during Covid and Post Second Lock Down Vacancy Trend in Business District of Noida
Grade A Other Grade
Pre Covid (Dec-19) Mar 20-Jun 21 June 21-Dec-21 Pre Covid (Dec-19) Mar 20-Jun 21 June 21-Dec-21
5
Note: Lease Rental Rates mentioned are Wtd Average Price on vacant area as on Dec-19, Jun-21 and
Sector Level Market Summary
Grade A office market in Sector 62, Sector 135 (Values in mn sqft saleable)
Sector 135 Noida Expressway 3.51 3.51 3.51 31% 12% 10% 50 50 52
Grade A ready supply from reputed developers are expected to have stable vacancy level and lease rental
The under construction property and strata sold from not so reputed developers have been delayed and there is
underlining execution risk in these project
Table showing the competitive Grade A projects in Sector 62, Sector 135
Note:- The above data is for fresh sale and leasing only.
Outlook
Indicator Outlook
Demand/Absorption Activity driven by expansion and new space requirements of occupiers have increased
Supply/ New
3.5 mn sqft of supply to be completed by 2025
Indicators Completions
Vacancy Decrease in Vacancy
Lease Rate Increased in demand post covid have lead to increase in rentals
BFSI Domestic Neutral
BFSI International Neutral
IT/ITES Positive
Sectors
Manufacturing Positive
Co working Neutral
Other Services Neutral
Noida Limited supply and higher rates will keep the market stable.
Sub
Noida Expressway Availability of large real estate supply at competitive rentals
markets
Noida Ext Low vacancy levels expected will keep the rates higher
Strong supply addition is expected in coming quarters. Noida Expressway are expected to receive over
three-fourth of the new space addition in 2022. While a few of the key upcoming projects have healthy pre-
commitments, new supply infusion will exert an upward pressure on the city’s overall vacancy. IT-BPM and
professional services segments are likely to be important demand drivers for office space in the city in the
coming quarters.
11% 10% 9%
60.00
14% 12%
16% 15%
18%
50.00
4.41
4.64
40.00 4.99
5.20
5.53 Completion Completion Completion
5.64
Mn sqft
0.00
2022 2023 2024 2025 2026 2027 2028 2029