Noida Emerges as Office Capital of North India

There was a time when Noida was considered a poor country cousin of Gurugram – a part of Uttar Pradesh, it was touted as a lesser equal of Haryana suburb. Both started around the same time. While Gurgaon was formally created as a district of Haryana on 15 August 1979, carved out of the Faridabad district, Noida was created on 17th April 1976 under the UP Industrial Area Development Act, 1976.

Noida was originally established to push the industrial units out of Delhi as they were causing pollution. While Noida started as a suburban extension of Delhi, it has evolved into a vibrant, independent city with its own economic, social, and administrative identity. Rather than a unidirectional approach to just being an industrial hub, Noida has emerged as North India’s IT corridor to reckon with, a residential suburb of choice for many Delhiites owing to vast availability of affordable to premium housing options and a haven for employment. It is home to manufacturing units, IT, ITES, corporates, media companies and houses some of the best educational institutions and shopping malls. With good administration and law and order of UP under control, the coming up of Noida International airport or Jewar airport, Noida is becoming sought after even as an office destination.

Whereas Gurgaon got established as the financial and corporate hub with a concentration of Fortune 500 companies and high-end coworking spaces, Noida is ideal for businesses seeking cost-effective office solutions with robust infrastructure and future growth potential. Gurgaon remains the go-to destination for premium office spaces catering to high-end corporate clients and global headquarters. Both markets complement each other and provide diverse options for tenants and investors based on their needs, budgets, and priorities. Noida is preferred for IT, media, e-commerce, and manufacturing industries while Gurgaon is ideal for finance, consulting, technology, and multinational headquarters.

In Noida, sectors like the Noida-Greater Noida Expressway and Sector 62 are commercial real estate hotspots while in Gurugram, Cyber City, Golf Course Road, and Sohna Road remain prime commercial zones. For premium offices, the office rental rates are comparatively lower in Noida, ranging between ?60-?90 per square foot for premium spaces. It offers better affordability for businesses looking for large spaces without compromising on quality. In Gurgaon, premium office spaces are priced significantly higher, typically between ?120-?160 per square foot in prime locations. It is targeted towards MNCs and high-end tenants willing to pay a premium for brand positioning and location prestige.

But there is something about Noida that makes it truly special city. According to Sandeep Singh, Managing Director Brawn Globus, an end-to-end building design, construction, project management company, “If you want to be in the capital city the Delhi NCR region, Noida becomes the obvious choice on account of its cost effectiveness and infrastructure. Today Noida has a growing ecosystem for tech companies, start-ups, and back-end operations and a competitive advantage due to cost-effectiveness. Noida has better infrastructure with wider roads, better urban planning, and upcoming projects like the Noida International Airport, which will enhance global connectivity. Metro connectivity is excellent, with extensions reaching Greater Noida and direct links to Delhi. Noida is preferred for mid-range investments and long-term growth potential and favoured for high-return investments, especially in luxury commercial spaces. A strong base of high-net-worth individuals and MNCs drives demand.”

In 2024, Noida's office real estate market experienced significant growth, primarily driven by the influx of IT/ITES companies and global corporations setting up operations along the Noida-Greater Noida Expressway and in Sector 62. Major firms such as Infosys, Microsoft, and Samsung have established offices in these areas, enhancing Noida's appeal as a strategic business location.

When it comes to sustainability and green spaces, Noida has been gaining traction with eco-friendly office complexes and LEED-certified buildings. Gurgaon is known for high-end green buildings, but faces challenges due to rapid urbanization and reduced greenery in commercial hubs.

In conclusion, Gurgaon remains a premium business location but faces challenges like higher pollution and infrastructure stress. But with the upcoming Jewar International Airport and Noida Film City Phase II, Noida promises significant growth and development opportunities.