Noida would turn into an affordable commercial hub in the coming years while Gurugram would continue to be the largest office market in the National Capital Region (NCR), a Colliers Research report said here on Tuesday.
"Noida has been the affordable option for the occupiers seeking sub-one-dollar office space. The average rent quoted by developers in Noida is about Rs 57 ($0.87) per square feet per month," said the report named "Delhi, Gurgaon and Noida - The Three Aces: Key Opportunities in the NCR Office Market".
As per the report, the average rent in Noida is "almost 35 per cent cheaper than the Rs 88 ($1.40) per square feet per month rentals quoted by the Grade A office buildings in Gurugram".
"The Noida market has historically been the preference of cost-conscious backend IT companies looking for affordable rents and excellent connectivity with Delhi," it said.
Of the overall leasing volume in the NCR over the past five years, Noida accounted for roughly 29 per cent of the total demand, according to the report.
"The city witnessed 1 million sq ft (0.09 million square metre) of absorption in Q1, 2018 which was almost double than Q1, 2017 demand."
The city would also host a number of multinational companies in the upcoming years, it added.
Regarding the other major commercial hub of Gurugram, the report said it "has been capturing about 60 per cent of the total regional office demand over the past five years".
It said many companies shifted their corporate offices from Connaught Place and south Delhi to Gurugram in pursuit of Grade-A office space at affordable rents with good connectivity to the international airport and other business districts of Delhi after the global financial crisis in 2008.
"Since then the city has become the favourite corporate office destination and has been experiencing demand from companies expanding."
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)