-The redeveloped 1.4KM road between Red Fort & Fatehpuri Masjid in Chandni Chowk, Delhi opened for the public recently.
Mr. Mohit Goel, CEO, Omaxe Ltd.
A 400-year-old legacy, Chandni Chowk’s glory as a witness to India’s history and rich cultural heritage is not hidden. Over the years, the heritage city that encompasses immense commercial value had remained entangled in overhead wires, dilapidated buildings, broken roads, cluttered walkways, and traffic snarls. Lack of organised commercial spaces had decelerated the growth of businesses and brands in a market with 5-6 lakhs daily visitors. But now, the opening up of a newly redeveloped Chandni Chowk is heralding a new chapter of commercial growth for investors in the heart of India’s capital. A thriving marketplace, Chandni Chowk in its new look is paving way for organised commercial spaces and is finally opening doors to Asia’s largest retail and wholesale market for commercial real estate investment.
Looking at the real estate market from an investment perspective, it is a perfect and rare combination of high returns and low risks for investors. As the economy is advancing from recovery to the growth phase, investors who have a deep understanding of real estate, are finding commercial assets a better option to enhance their investors’ portfolios for higher revenue generation and stability. Industry reports too are confirming the heightened sentiments, and are saying that net leasing of commercial spaces has risen 32 percent year-on-year to 4.39 million sq. ft. during the April- June period this year. The pre-leasing commitments are still intact, and the leasing volumes in Delhi-NCR have increased from 1.9 million sq ft in Q4 2020 to 2 million sq ft in Q1 2021. According to rating agency ICRA, growth in the real estate sector will continue to expand over time. Delhi which has a faithful footfall of customers in the market can put investors in profitable positions looking at maximum ROI. Owing to such promising results, commercial real estate has also become stronger recently.
Chandni Chowk is the most preferred destination for shopping and trading in apparel and accessories during weddings and festivals. Besides, it is a huge market for gold and silver, lighting, electric equipment, spices, dry fruits, books, etc. And not to forget the food! Tourists also flock to Delhi for a shopping experience and to feel the old-world charm. The region already enjoys the presence of approx. 50k business units and smooth connectivity aided by Delhi Metro and railway station are further uplifting its commercial value. Chandni Chowk market is fast getting converted into an organised commercial hotspot. The coming up of next-gen retail/wholesale spaces and shopping malls are expected to cater to 40 lakh serious shoppers monthly in the coming years.
Sustainability is another element that is enhancing the commercial value of Chandni Chowk. The increased awareness on maintaining the aesthetics and grandeur of this heritage city, has redesigned the approach towards sustainable commercial development. Addressing the traffic woes, rising air pollution levels, and lack of parking facilities, the multilevel parking facility will soon become operational here. This will not only help to make the area strictly a no-vehicle zone but will also hold 2100 + cars to reduce congestion.
A next-gen shopping destination is in the offing in Chandni Chowk that has given an opportunity for businesses to serve a loyal shoppers base that has been regularly visiting the area for wedding and jewellery shopping, food, leisure activities, tourism, etc. The destination guarantees high rental yields for investors in commercial properties which will grow stronger over the next quarters. Based on both present and future rental analysis, the price of the property will show greater appreciation and the prospects of a good return and capital preservation and appreciation are also high.
Commercial real estate will continue to be in a dominant position as a most sought-after investment option. Amid this, the emergence of a revamped Chandni Chowk is not only catapulting opportunities for investors here but is also restoring the area’s lost glory as of the country’s most influential commercial hub.