Bangalore: Industrial rents in Greater Noida, on the outskirts of New Delhi, posted a growth of 25% year-on-year in 2008, the eighth highest annual growth in the world, according to a report by real estate advisory Cushman and Wakefield Inc.
The annual report, titled ‘Industrial Space Across the World’, provides a detailed analysis of prime industrial property rental performance and occupancy costs across the globe. The latest report is based on a survey of 135 locations.
Greater Noida, which falls in Uttar Pradesh, was planned with an aim to attract medium and large-scale industries. Industrial rents in the city primarily moved nothwards last year because vacancy levels were marginal and there was limited supply that came into this market. So demand overpowered supply in the area. Also, sectors such as engineering goods, electronic goods, auto and auto ancillary showed interest in setting up units in Greater Noida and the area was promoted as an ideal campus location.
Shooting up: A file photo of the Yamaha office in Greater Noida. The area posted the eighth highest growth in rentals in the world. Harikrishna Katragadda / Mint
Peenya Industrial Area and Bommasandra Industrial Area, both in Bangalore, recorded the 12th and 16th highest annual growth, respectively, in the report, which ranks London’s Heathrow as the most expensive industrial location in the world.
“Traditionally expensive industrial locations like Mumbai, Pune, Chennai have seen a slowdown due to high price points and large scale development in recent years,” said Harleen Oberoi, executive director, industrial services, at Cushman and Wakefield. “Slowdown in the economy has affected the general uptake of industrial spaces, especially by large multinational corporations who were in the recent years keenly looking at India.”