New Delhi: Gurugram (Gurgaon) real estate market has received over USD 1 billion in investments from developers and institutional investors so far this year, according to global property consultant CBRE.
Gurugram continues to dominate as a corporate hub with increased investments in real estate by institutional investors and developers, CBRE said in a statement. Gurugram has become the new Central Business District of NCR with over 70 per cent share in office leasing.
With over one billion dollar of investments by way of land acquisition and financing, the overall long term outlook is bullish with commercial office markets in overdrive and emerging areas of Gurugram offering excellent residential development opportunities.CBRE
Over the past 3 years, while Noida transacted between 1-1.5 million sq ft of gross leasing annually, Delhi was even lower at an average of 8,00,000 sq ft. Gurugram in comparison was far ahead with an average gross leasing of 5.5 million sq ft annually with last year clocking a high of 7 million sq ft.
This is driving significant institutional interest (as well as investment commitments) to capture the growth wave of increasing lease rents and high sale prices. Further, increase in such demand is further leading to an increase in working population thereby generating additional housing demand.
Investments by institutional investors and developers alike show enhanced confidence in Gurugrams future.
Future ready trunk infrastructure such as roads, power and water; ready social infrastructure clubbed with affordability has been the key driving factors of the region, said Anshuman Magazine, Chairman India & South East Asia, CBRE.
While prime areas of Gurugram such as Golf Course Road and MG Road are saturated and considered expensive for residential space, emerging areas such as Golf Course Extension, Dwarka Expressway and New Gurugram offer multiple development opportunities tapping demand from first home buyers as well as investors.
In addition to bullish investors, prominent international developers from China and other neighboring countries are evaluating Gurugram as their first market for investment. Reputed developers have joined hands with strong institutional investors to actively acquire strategic land positions within emerging areas of Gurugram, which is a clear indicator of the expected long term dividends, the consultant said.