If you are considering expanding your business in Delhi, look beyond the old city’s boundaries to NCR. The transformation of the area surrounding Delhi started in the 90s with the introduction of open policies by the government. The matured economic policies drove in new business opportunities and employment and there was a sudden surge in demand for modern office space in Delhi.
Delhi being the capital city of the country received most attention and suddenly new office premises started coming up around the city centre. The major boom in real estate and commercial places was due to the development of IT and IT enabled service industry. Gurgaon and Noida were the first two cities to wake up to this new trend. Influx of major multinationals changed the profile of these areas and to support the growth the areas surrounding the capital were brought under major developmental project. In order to make the development process organized the National Capital Region (NCR) was divided into six areas namely - Delhi, Gurgaon, Faridabad, Ghaziabad, Noida and Greater Noida.
The expansion has helped Delhi to deal more economically with the increased demand of office accommodation in the region. When cities like Mumbai, Bangalore and Hyderabad struggled to sustain the increasing demand and price of real estate, NCR smoothly continued to modernize. In the Q 1 of 2013 cities like Mumbai, Pune Bangalore and Hyderabad saw an appreciation of 12-15% in property values but during the same period property prices in NCR has experienced an explosion. In the same period the housing prices in Gurgaon area increased by 72% compared to the properties in Delhi. Major realtors and property developers of the country are focusing on NCR and greater Delhi for their upcoming real estate project – both commercial and residential.
Two of the major factors that promoted the growth in this region are:
- Closeness to the national capital. Delhi attracted more investment than any other parts of the country during the initial phase of modernization. As a result this area grew rapidly. There was a major infrastructural development in terms of energy, communication etc. to support the changed business scenario.
- These new offices also created a major demand for manpower and there was in turn a large inflow of migrants from other parts of the country that escalated the demand for housing projects in these areas.
The above mentioned factors encouraged the state government to undertake major development projects. As a result, there were major construction works undertaken for conference rooms, office space, business centres etc.
If you have plans for expanding your business in Delhi or Noida then you may have to consider expanding to NCR areas. Even with high property prices there are also a lot of new projects coming up regularly, which means that you have more options for office space in Noida and Delhi compared to the other destinations in India.