[ad_1]
Prime Minister Narendra Modi and South Korean President Moon Jae-in inaugurated Samsung India Electronics' new mobile phone manufacturing plant in the Noida 81 area earlier this week. Will the new facility be a game changer for the Noida real estate market, similar to the Maruti factory in Gurgaon? Will this have an impact on commercial property prices along the Noida-Greater Noida belt up to Yamuna Expressway?
The immediate impact of Samsung's installation on the Noida market could be to encourage tenants to install. Tenants of anchoring are usually the first to settle in and help attract other tenants. Samsung could be followed by other medium-sized and small businesses taking up space in multi-sector towers, particularly in Category A spaces.
Real estate experts believe however that there may be no rise in commercial rents in the short term. For the record, the first Korean giant to set up a large factory in Surajpur, Greater Noida, was Daewoo Motors India, which invested 4,300 crores of Rs in 1998. It was perhaps the first South Korean company to invest in the Indian automotive sector. At the time, nearly 75% of the Matiz car was manufactured in India
The twin cities of Noida and Greater Noida already house more than 50 mobile units, including Vivo, Oppo and Xiaomi. Oppo has a manufacturing unit in Noida and is setting up a second factory in Greater Noida with a production capacity of 10 million handsets a year. What the Samsung facility should do is create jobs in the area. The Delhi-NCR industrial region is expected to see an investment of Rs 10,000 crore and generate jobs for more than three million people. With Samsung being the latest entrant, the region will become the center of the world's mobile phone, experts say.
Impact on residential and commercial demand
What happened in this case is that a large The player has cashed in economies of scale by installing a new factory in Noida. The belt of Noida-Greater Noida is a place of good value and, as the Jewar airport gets closer to its operation, it will be a growth Healthy
"Currently, companies do not move from Gurgaon to Noida, only those who plan to expand or set up large campuses are seriously studying Noida and Greater Noida, and this is also due to the availability of better infrastructure. that Gurgaon, especially the future metro corridor that is expected to improve connectivity and Jewar Airport connected by the Yamuna Highway, "says Anckur Srivasttava, of GenReal Advisers
. been the preference of IT companies backend Conscious of the costs seeking affordable rents and excellent connectivity with Delhi.Despite the traditional image, the city is also preparing to host a plethora of multinationals in the coming years. A healthy 13 million square foot supply is currently under various construction stages across Noida. On this upcoming offer, approximately 62% of projects take the form of commercial badets. With the increasing supply of Clbad A buildings, we expect this market to evolve into a more diversified shopping center in the future, says Sanjay Chatrath, executive director of Colliers International India (NCR).
. Great market of Noida. The most positive impact will be on job creation, which in turn will create demand for housing, retail demand and indirect demand for social infrastructure. The Samsung plant will be located in sector 81. Thus, this area and its immediate vicinity would be the largest beneficiaries. Prices and rents depend on several factors of the dynamics of supply and demand and, therefore, a single factor should not be considered as the sole factor of influence. However, such an important configuration will inevitably be a driving force of the demand and if the offer remains constant, logically, we will see firstly the taking of the available space, and then a possibility of price increase. , says Ramesh Nair, CEO & Country Head, JLL India
Do not reproduce the effect Maruti
Real estate experts also say that the establishment of the unity of Samsung might not have the same impact as that of the Maruti factory in Gurgaon the first time a key tenant decided to install a facility in Noida. It should be remembered that the government of Uttar Pradesh had established in 1976 Noida or the new Okhla Industrial Development Authority in order to acquire farmland from farmers to create industries In the region. There are already several manufacturing units established in the region.
"This belt has always been a center of commercial activity.We have set up factories here, the hardware manufacturing companies are already there.It has always been a home of manufacture.Gulam Zia, Director Executive – Consulting and Evaluation, Retail and Hospitality, Knight Frank India
The movement shows an improvement in the situation of law and order in the region of Noida
Samsung's new factory in Noida is a manifestation of the improvement of the law and order situation in the region.Some severe legal measures such as life imprisonment granted by a court from Noida to the kidnappers of the son of Adobe CEO Naresh Chand Gupta in 2011 helped inspire confidence in multinational firms to consider the Noida market
Gulam Zia, Executive Director – Consulting and Evaluation, Commercial this retail and hospitality, Knight Frank India agrees that improving the law and order will help restore trust between businesses and give a shot to the creation of & dquo; Jobs
for commercial real estate?
While commercial real estate in Gurgaon is at Rs 80 to 90 per foot, in Noida high-end "A" category spaces with subway connectivity, it may be available for Rs 40 per foot square Rs 50 per square foot
"The first step of the price improvement is related to the resumption of absorption.The volumes are raised 6 to 12 months later.Getting anchored occupants is important for a new corridor to gain ground, prices on the Gurgaon golf course improved after GE set up its headquarters there, and the same trend was observed in the Bengaluru Whitefield Corridor. do not increase immediately because there is no shortage of land.But a shortage of ready supply can raise rent for the short term but not for the long term because of the Excessive availability of land, "says Sriva sttava.
Compared to Noida, Gurgaon has an advantage because it is multisectoral market that does not depend solely on industrial activity. "On one side, you have Maruti, Honda etc. and on the other a huge network of services, IT, BPO and financial services, the banking sector are all concentrated in Gurgaon.
Prices may only not increase in the short term the space is still subject to Noida.The growth of the manufacturing will take a while to reflect the needs of office space.The improvement in demand does not result in an increase renting immediately.If there is sustained economic activity, creating jobs, then in the next three to five years, prices could rise, says Zia.
L & # 39; combined impact of the Jewar and Samsung airports on the Noida market [19659002] The international airport of Jewar will certainly lead to a global development in this area it will take more than 4-5 years for finish the first phase of the airport.The entire belt of Greater Noid A and Yamuna Expressway is currently witnessing a moderate demand because the area is not yet viable for end users.
"A new airport will significantly boost real estate development in the region with the development of civic infrastructure, while several undeveloped and underdeveloped sites are again affected by the radar of developers and buyers. Excess supply and moderate demand leave only a very low margin of appreciation on real estate and property prices, "says Chatrath. Opinion that airports are not directly related to an improvement in the 39. Real estate. "Airports are a speculative investment to give a boost to real estate," says Zia, whether it's Hyderabad Airport or Bengaluru Airport, none of them has had an impact on real estate in the vicinity and Panvel Airport in Mumbai should not create real estate around the city. airport immediately.They are all speculative e They are not likely to give a boost to real estate, he says.
Real Estate Transactions in Noida and Greater Noida
There have been some commercial real estate transactions in Noida in recent times. The computer company Birlasoft, part of the CK Birla group, has rented an entire office building of more than 3,000 m² as part of a joint project of Assotech Realty in Noida, according to data obtained from real estate consulting companies. In recent months, Ace Global has invested 80,000 square feet in Arihant IT Park, area 126, along Noida Expressway. EXL took 75,000 square feet in the Blackstone SEZ and Conduent took 1 lakh sq ft in Candor Tech Space SEZ. Amazon leased 50,000 square feet in Unitech Infospace; Pitney Bowes rented 29,000 square feet in Logix Cyber Park and Ricoh rented 30,000 square feet in Winder IT Park.
[ad_2]
Source link
