Should You Invest in Commercial Property in Noida Extension?

March 31, 2022
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With several infrastructure developments and housing projects, Noida Extension is one of the fastest developing residential hubs in Greater Noida. The area is filled with wide roads, open spaces and good connectivity from Noida. In addition, the upcoming metro is also expected to improve further connectivity with the other parts of Delhi NCR. As most home buyers are now seeking to have new homes in one or the other residential projects here, the demand for plots in Noida extension is still high. Thus, the lack of commercial areas and retail markets are still the major concerns in the area. While it indeed raises a cause of concern for an end-user, it might be the best opportunity for commercial investors.

Most real estate experts believe that as Noida Extension lacks commercial areas, it creates a huge opportunity for investors. There are many renowned residential projects, such as Ametek Plots, and Mahagun Mywoods, which provide a living society in the area. In terms of commercial infrastructure, several builders have introduced the idea of coworking spaces in Noida. However, the same planning is expected to spread over the Noida Extension soon to provide a great working experience. Thus, there are many key factors involved that an investor should be aware of before buying a commercial property in Noida. Here are some of these:

Demand

Generally, an investor always seeks to buy a retail shop or an office space to get a high return on investment. Therefore, before investing, one must be well informed about the demand for office and retail space in the area. More than 200 residential projects are expected to come, and commercial real estate will have a high demand for spaces in the Noida Extension.

Builder’s Background

Before making any investment plan, it would be wise to know the developer’s background and experience in the field of commercial real estate. Not to mention, the developer’s track record plays a huge role that influences the marketability of any project. This is mostly applicable in the case of luxury and fashion retail brands.

Location

The location of any commercial property is crucial as with time it will determine the kind of returns it will generate. Judging by the current scenario of the Noida Extension, the area near Gaur Chowk presents a healthy proposition. Even investing in areas such as Sector 16 would be a great decision as the value will be appreciated by a commercial real estate investor.

Maintenance Cost

Generally, most investors fail to include maintenance costs in their investment plans. The high cost of maintenance would certainly discourage many tenants from leasing the property. Therefore, it is recommended to get a shop or office space where the project has less maintenance cost.

Footfall

Generally, the daily number of visitors has a direct impact on the demand for offices and shops in a project. Therefore, every commercial investor should understand the footfall in the area or the project. This will help to assess the magnitude of expected rental returns of the purchased property.

Conclusion

Most residential projects in the Noida Extension are expected to have a dedicated commercial area in their layout. There are many commercial projects, such as Logix Technova, To-Day and more, that provide a wide variety of retail shops as well as office spaces. Thus, to minimize the risk factors, investors can look over different lucrative plans that are offered by developers, such as lease guarantee post possession and return on investment. Lastly, it would be wise to compare the pros and cons of commercial properties before making the final decision.

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