Posts Tagged ‘mumbai vs delhi’

Mumbai vs Delhi: Which is better city?

Planned cities: Why Delhi is hotter property than Mumbai

by Sunainaa Chadha Jul 2, 2012

Despite the global economic slowdown, strong demand from the IT space as against financial services has helped NCR (National Capital Region) overtake Mumbai as the largest commercial market in India with nearly 85 million (8.5 crore) square feet of office space under operation, of which Gurgaon and Noida have contributed nearly 89 percent  of the upcoming office supply, a latest report by property research firm Knight Frank pointed out.

So what is it that makes Delhi more attractive than Mumbai for corporates?

Improved infrastructure, open spaces, good transport connection, low-cost housing , a metropolitan lifestyle in areas around offices and cheaper land.

Good infra and connectivity key to rise in office absorption in Delhi

Delhi commercial realty is completely IT-driven, which are not only expanding but also consolidating operations  by renting large spaces in areas like Gurgaon and New Delhi,  Santosh Kumar, CEO Operations at realty firm Jones Land LaSalle India told Firstpost. Gurgaon’s biggest advantage is its proximity to the airport, smooth connectivity to New Delhi and land costing between Rs 65-100 a square foot, which is what IT companies can afford, he explained.

Delhi commercial realty is completely IT-driven, which are not only expanding but also consolidating operations by renting large spaces in areas like Gurgaon and New Delhi

Moreover, apart from Gurgaon, companies are seen shifting office space to Noida too. This is because rentals are nearly 50 percent lower in Greater Noida compared to Gurgaon. This has been the biggest pull factor for companies looking to set up big campuses here. “Good connectivity, planned infrastructure and ample affordable housing options for employees are some of the key contributing factors to the growing commercial developments in Greater Noida. The proposed metro will further boost the real estate development in this region,” said Samanthak Das, national research head at Knight Frank in its latest report.

Cheaper land, easier payment options for builders in Noida

Secondly, land in Noida is government-controlled which is then auctioned off for construction. This makes it easier for developers too as they can pay for the auctioned land in installments, said Kumar.

While Capgemini, Ingersoll Rand took up place in IT SEZ buildings in Gurgaon, Google signed up a deal in a non IT stand alone building in Gurgaon. Hewitt and United Health Group preferred Noida over other micro-markets.

Mumbai, on the other hand is an expanding city with diminishing space.  As an Outlook report pointed out “MMRDA built the Bandra Kurla Complex but did not factor in transport connections. Planning when it happened, was piecemeal, sectoral and driven by vested interests.”

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