M3M India Set to Lease 1.5 mn Sqft of Commercial Space in Fy’25

M3M India Set to Lease 1.5 mn Sqft of Commercial Space in Fy’25

The commercial real estate market in India is projected to reach USD 106.05 billion by 2029 from USD 40 billion in 2024, with a compound annual growth rate (CAGR) of 21.10% during the forecast period (2024- 2029), according to a report by Mordor Intelligence.

The influx of global companies into India and growing domestic demand are expected to boost rental yields further. Another striking feature is the capital appreciation in commercial properties, ranging from 5-10% in prime locations, which is surpassing the growth rate of residential real estate, making it a preferred choice for investors.

Assessing the growing demand, M3M India — a leading player in the commercial segment in Delhi-NCR, particularly Gurugram — is looking to lease out about 1.5 million square feet of commercial space during the current financial year.

M3M’s one-million square feet, International Financial Centre (IFC) at prime Golf Course Extension Road is already 100% occupied. Its another high-end 700,000 square feet office space project, Urbana Business Park (UBP), is enjoying 75% occupancy.

M3M’s other commercial projects on SPR – M3M Broadway, M3M Prive, M3M Cornerwalk — are already in high demand due to their prime location, according to the company.

M3M’s IFC also has F&B space of about 200,000 square feet which has been occupied by 50 national & international F&B brands including Virat Kohli’s One-8- Commune, Japanese Harajuku Tokyo Cafe, Coco Ichibanya, Kofufu, Social, Smoke House Delhi, Starbucks, Taco Bell, Molecule Bar, Anardana, China Garden Café, Daryaganj, Mama Goto, and Soul Barcelona.

Brands like Snapdeal, Pidge, Square Yards, Knowledge Centre, Anytime Fitness, Urban Ladder, Reliance Digital, Reliance Trends, to name a few, who have been scouting for large commercial space, have already occupied M3M properties at International Financial Centre (IFC), Urbana Business Park (UBP), Urbana Premium, TEE Point and Broadway.

Besides, PVR is setting up 8-screen multiplex in M3M 65th Avenue in about 70,000 square feet space, and Wave Cinema is setting up 7-screen multiplex in 50,000 square feet at M3M Urbana Premium, both in Gurugram.

“With the boom in Indian economy, the commercial realty sector is flourishing too. The high demand for space is coming from automobile sector, retail, textile, F&B, cosmetics, FMCG, textile and also furniture sector. These sectors require space for office and also for retail. Since all the commercial projects of M3M are strategically located with close proximity to Delhi Airport, Aerocity, Metro and excellent connectivity through expressways & highways; a large national and multinational brands have occupied space in M3M commercial projects. This demand is primarily driven by boost in the Indian economy, economic stability, increasing purchasing power of middle class and increasing urbanization. The global players are also noticing India’s potential and looking for long-term investments in commercial realty sector,” says Sudeep Bhatt, National Sales Head, M3M India.

With a stable government at the Centre, various sectors are set for further growth in India. The automobile sector is likely to see a growth of 9.7% in the next 5-6 years. It is set to reach USD 160 billion by 2027. Another sector is F&B, which is seeing a growth of 8.5%. F&B also contributes about 3% to India’s GDP. The retail sector, though largely unorganized, is also seeing growth in modern retail with focus on e-commerce. India’s retail sector is projected to grow at a CAGR of more than 13%, reaching $2 trillion by 2032. The furniture market in India is expected to grow at a CAGR of 8.17% from 2024 to 2028.

Gurgaon is India’s second largest information technology hub and third largest financial and banking hub. Gurgaon is also home to one of India’s largest medical tourism industries. The increase in realty demand is compelling Gurugram to expand further towards Southern Peripheral Road (SPR) and Northern Peripheral Road (NPR).

Source : FE

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