India’s commercial real estate market has been expanding rapidly, with several up-and-coming cities showing significant growth potential. Here are some of the top emerging commercial real estate markets in India, along with their year-on-year office rent increases:
1. Hyderabad
– Growth Potential: Hyderabad has become a major hub for IT and ITeS industries. The city’s infrastructure development, business-friendly policies, and availability of skilled workforce are driving growth.
– Office Rent Increase: The city has seen a year-on-year office rent increase of approximately 8-10%.
2. Pune
– Growth Potential: Known for its IT and automotive industries, Pune is witnessing substantial commercial real estate development. Its proximity to Mumbai and a growing young workforce make it an attractive destination.
– Office Rent Increase: Pune has experienced a year-on-year office rent increase of around 7-9%.
3. Bengaluru (Bangalore)
– Growth Potential: Bengaluru remains the top destination for tech companies. However, new submarkets within the city, like Whitefield and Outer Ring Road, are emerging as significant commercial hubs.
– Office Rent Increase: The city has seen a year-on-year office rent increase of approximately 6-8%.
4. Chennai
– Growth Potential: Chennai’s growth is driven by its strong industrial base, port facilities, and growing IT sector. The city is becoming a preferred location for both domestic and international businesses.
– Office Rent Increase: Chennai has witnessed a year-on-year office rent increase of around 5-7%.
5. Noida and Greater Noida
– Growth Potential: These cities are becoming prominent due to their proximity to Delhi, excellent infrastructure, and burgeoning IT and industrial sectors.
– Office Rent Increase: Noida and Greater Noida have experienced a year-on-year office rent increase of about 7-8%.
6. Ahmedabad
– Growth Potential: Ahmedabad is gaining traction due to its industrial growth, improving infrastructure, and business-friendly environment.
– Office Rent Increase: The city has seen a year-on-year office rent increase of approximately 5-6%.
7. Kolkata
– Growth Potential: Kolkata’s commercial real estate market is evolving with new IT parks and commercial spaces being developed, attracting businesses from various sectors.
– Office Rent Increase: Kolkata has witnessed a year-on-year office rent increase of around 4-5%.
8. Navi Mumbai
– Growth Potential: With significant infrastructure projects like the upcoming Navi Mumbai International Airport and various commercial developments, Navi Mumbai is emerging as a key commercial hub.
– Office Rent Increase: Navi Mumbai has experienced a year-on-year office rent increase of about 6-7%.
These cities and regions are seeing considerable investment in infrastructure, favourable government policies, and a growing demand for office space, making them attractive for businesses and investors alike.