The Future of REIT’s in India and its impact the commercial real estate market

Currently, there is about 160 msf of Grade A office space that is scheduled to be ready between 2016 and 2019 in the top 8 cities i.e. Mumbai, Delhi-NCR, Pune, Bangalore, Hyderabad, Kolkata, Chennai, Ahmedabad. These cities already account for about 415 msf of Grade A operational office spaces as of December 2015. This completed inventory gives REITs an opportunity to generate an estimated rental income of USD 5.4 billion, added to which the upcoming Grade A supply between 2016-2019 gives a potential incremental rental income of USD 2.5 billion by 2019.

The commercial real estate market in Noida has shown an upsurge in last few quarters. Moreover, the state government is going to develop a mobile & technology manufacturing hub around Noida and Greater Noida. Area wise, WTC Noida is WTCA's largest operating WTC, second to Beijing, China. The project is being developed by Viridian RED. These developments have encouraged many MNCs to shift their base to Noida. One such shift happened last year when Vivo Mobile, a mobile handset manufacturer shifted their operations to WTC Noida.

Noida Preferred Destinations For Commercial Projects

With enhanced infrastructure, world-class residential, commercial and educational facilities the city has not only engrossed maximum home-buyers but also big corporates, start-ups and PSU’s. With high end infrastructure and premium facilities, the city has become a rapid-developing real estate destination in comparison with other areas in Delhi/NCR. The office market in Noida is gaining traction due to availability of quality office space at lower rentals compared to Delhi and Gurgaon and presence of excellent infrastructure.

Recently, it has been observed that majorly big conglomerates are shifting their offices in Noida and suburb. One such shift happened last year when Vivo Mobile, a mobile handset manufacturer shifted their operations to WTC Noida. 

The Viridian Red project World Trade Center Noida saw 100% Occupancy for its first phase and after seeing the huge demand it is developing the third and final phase and aims to complete it by the year 2020.

WTC Noida - Leading Innovation

Being a good affordable market with good infrastructure, Noida is a suitable destination for realty investment. Noida market is driving economic growth and is emerging as the India’s preferred commercial hub. Brands like WTC Noida among others who are providing unique design solutions are attracting big buyers. Thanks to its comprehensive ecosystem, WTC Noida complex has been attracting various new age businesses and its Venture Accelerator Center has already incubated 30+ companies and counting.

Noida Leading the Commercial Real Estate Segment

The office market in Noida is gaining traction due to availability of quality office space at lower rentals compared to Delhi and Gurgaon and presence of excellent infrastructure. The investors’ friendly Government policies and guidelines to boost commercial infrastructure activities is adding more value to the region. Delivery of projects in Noida has got better with these guidelines, leaving a positive impact on the sentiment of the market as the occupancy rates start to rise. Lately, the Viridian Project, WTC Noida which has a global network of office complexes across 330 cities in 100 countries, delivered Phase 1 just on time.

The first phase of WTC Noida saw a 100% Occupancy from Day One. Standing in its full glory, the first phase of WTC Noida (Tec I and Tec II tower) got leased to VIVO, a premium smartphone company. The full occupancy of WTC Noida Phase 1 shows the strong brand image in the market and in future it will generate a huge demand for its other complexes.

WTC Noida Opening New Horizons in the Commercial Space

With the changing time, the urban policy makers are considering innovative ways to use technology to manage commercial space amid changing expectations of the expanding urban population. Companies like World Trade Center are creating a wave in the current domain. With an innovative mix of skills, tactics, and strategies WTC Noida complex has been attracting various new age businesses and its Venture Accelerator Center has already incubated 30+ companies and counting.

Headquartered in New York, USA, World Trade Center Noida is changing the face of the commercial space through its innovative design solutions. 

Memorandum of cooperation (MoC) signed between World Trade Center (WTC) Noida and the China Association of Small and Medium Enterprises (CASME)

The exceptional facilities and services of World Trade Centers attract some of the biggest names from business. WTC Noida, the regions' premier trade and investment facilitation organisation, has signed a memorandum of cooperation (MoC) with the China Association of Small and Medium Enterprises (CASME). The MoC aims towards creating various trade and investment opportunities for Chinese enterprises willing to explore the Indian market.

WTCs facilitate international trade and thus contribute to development of regional business communities, creating thousands of job opportunities and enabling millions of dollars of business for the regional community. Viridian RED is developing WTC Noida's third phase. The first two phases are already completed and delivered.

Executive president of CASME Group, Jun Shao envisaged for a boost in trade and economic relations through this MoC. He said, "This collaboration will further strengthen India China cooperation and investment from Chinese enterprises will boost the manufacturing sector. It will also prove to be a huge to stimulate cross border trade and investment relation between the two fastest developing nations of the world."

The trade and investment opportunities will only grow in India – CEO WTCA

India is a good investment option for those willing to hold properties for long-term. With investor friendly trade policies, the commercial segment is seeing a huge improvement. Talking about global brands like WTC, they are creating innovative commercial spaces for the buyers with all the required conveniences. 

The World Trade Centers Association (WTCA) CEO Scott Ferguson said, ‘’Trade and investment opportunities will only grow in India with recent changes in government policies’’. 

"Real estate globally is seen as a key driver of economic growth and needs to be seen as (something) beyond an asset class," a statement quoted Ferguson as saying.

Further addressing to the community Ferguson said"I congratulate WTC Noida on becoming the first operational facility in North India, delivering its first two towers which are completely leased and hope to see great results for the next phase as well. Viridian group is our main partner in India".