Global Capital Is Doubling Down On NCR's Commercial Assets; What's Fuelling The Rush?

Global Capital Is Doubling Down On NCR's Commercial Assets; What's Fuelling The Rush? Net office absorption in NCR jumped 61% year-on-year in 2024, the sharpest increase among major cities, to touch 9.5 million sq. ft. Delhi-NCR has entered a phase of commercial real estate activity that is beginning to stand apart even in an otherwise buoyant Indian property cycle. Over the past few years, the region has experienced rapid real estate growth, infrastructure development, and corporate expansion, attracting global capital at an unprecedented speed and scale. Institutional investors, pension funds, sovereign wealth entities, and private equity platforms treat NCR as one of Asia’s more reliable commercial markets, rather than a speculative bet. The change is visible in the numbers: net office absorption in NCR jumped 61% year-on-year in 2024, the sharpest increase among major cities, to touch 9.5 million sq. ft. Despite substantial new supply, vacancy levels have eased 2.6% to 22.6%, while rentals across key micro-markets have strengthened by about 5% on average, with pockets like Noida Expressway and Golf Course Extension Road seeing a far steeper climb over the past five years. Prime retail assets tell a similar story, with vacancy in premium malls having slipped to 8.3%, and trading densities continue to rise. Recommended Stories This resilience explains why NCR has become a preferred deployment zone for foreign institutional investors. Of the USD 8.87 billion in real estate investments that entered India in 2024, global investors accounted for nearly two-thirds, and a disproportionate share found its way into Delhi-NCR’s office, retail, and mixed-use portfolios. Their interest is not episodic. Capital managers view NCR as a deep, maturing market, large enough to absorb sustained inflows without the volatility that characterized earlier cycles. Mohit Goel, managing director of Omaxe Limited, said, “Global capital is showing unprecedented confidence in NCR’s commercial real estate, and we see this reflected strongly in emerging hubs like Faridabad and Dwarka, Delhi. Over the last two years, institutional investments in NCR’s Grade-A commercial and retail assets have risen by an estimated 30-35%, driven by stronger connectivity, infrastructure upgrades, and sustained demand from organized retail and new-age businesses. Our developments in Dwarka and Faridabad are directly benefiting from this momentum. Investors are now prioritizing long-term, stable, income-generating assets, a shift that underscores the structural transformation taking place in the NCR market." The momentum is driven by a combination of structural and cyclical factors. Multi-national companies are scaling their Global Capability Centres, which have evolved from back-office support roles to high-value engineering and digital functions. This shift has materially changed the nature of demand. NCR’s strong engineering workforce, proximity to decision-making centres, and established social infrastructure make it a preferred base for complex, high-skill GCC operations. Sandeep Chhillar, founder and chairman of Landmark Group, said, “NCR has reached a maturity level where global investors feel comfortable committing long-term capital. The region offers depth, diverse occupiers, a large GCC presence, and rental resilience across cycles. What stands out today is the consistency of demand in office and retail...

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