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NBCC says sold entire commercial space at WTC, Downtown in Delhi for ₹14,799.62cr
An overwhelming portion—70% of the commercial area at the WTC—was sold to government bodies/PSUs. The sales from the two projects generated a total of Rs.14,799.62 crore
New Delhi: The entire commercial inventory of 3.4 million sq ft at the World Trade Centre (WTC) in south Delhi’s Nauroji Nagar and another 364,000 sq ft in Downtown in Sarojini Nagar have been sold, the National Buildings Construction Corporation (NBCC India), a public sector unit (PSU) under the Union ministry of housing and urban affairs (MoHUA), said on Thursday.
An overwhelming portion—70% of the commercial area at the WTC—was sold to government bodies/PSUs. The sales from the two projects generated a total of Rs.14,799.62 crore, according to NBCC.
Vibhor Jain, managing director North, Cushman & Wakefield, a leading commercial real estate service provider, said PSUs have been more active in acquiring spaces like the WTC due to their business models, which favours ownership. “In contrast, multinational corporations (MNCs) typically prefer leasing to avoid burdening their balance sheets. Additionally, private developers in prime locations often choose to retain their buildings as ongoing revenue sources, further limiting the availability of properties for sale. The NBCC’s model, which focuses on selling, aligns well with the buying preferences of PSUs,” he said.
An NBCC official said all the space was sold through a round of auctions, where both public and private players participated. “The process did not impede private players, but since this is prime land at the heart of the city, only bigger private players could compete,” the official said, adding that a private sector bank has bought one whole tower alone.
The WTC has been built to replace old, dilapidated central government quarters in Nauroji Nagar on a project site of about 25 acres of land. The WTC features 12 towers, each with ten floors, with the option to grow and expand. The Downtown project has been executed on a land parcel of 2.18 acres with a commercial built-up area of 377,000 sq ft. spread over four levels of basement and eight additional floors. The first four levels of the hub accommodate retail spaces, and the top levels are for office space use.
The NBCC said in its statement that at the e-auction of the WTC, which was held recently, 1,81,000 sq ft. of commercial space at a price of Rs.908.48 crore was sold, of which around 1,21,000 sq ft., with a sale value of approximately Rs.596.25 crore, was sold to other PSU/government entities, and 60,000 sq ft., with a sale value of Rs.312.23, was sold to private entities.
“The highest price fetched in the 27th e-auction for a unit was Rs.62,261/sq ft. against the reserve price of Rs.37,161/sq ft. This showcases the success of WTC, Nauroji Nagar, a destination desired by many to base their enterprises,” the statement added.
Similarly, for Downtown, the PSU said they have sold the remaining unsold commercial inventory of 3,52,000 sq ft, which has a sale value of approximately Rs.1,343 crore, through bulk sale. Thus, the entire inventory of 3,64,000 sq ft, valued at approximately Rs.1,391 crore, has been sold.
The project includes 329 shops with a built-up area of approximately 1,81,500 sq ft. and 300 offices with an area of approximately 1,84,400 sq ft. The size of the shops ranges from 138 sq ft to 738 sq ft, while the office sizes range from 216 sq ft to 882 sq ft. This commercial project also includes a parking facility for approximately 675 vehicles.
Both these projects were to be built on a self-sustainable basis as part of MOHUA’s seven General Pool Residential Accommodation (GPRA) colonies redevelopment project approved by the union cabinet in July 2016.
The funds for the entire redevelopment of all seven GPRA colonies are being generated through the sale of commercial space at Nauroji Nagar and Sarojini Nagar. While NBCC is redeveloping Nauroji Nagar, Sarojini Nagar, and Netaji Nagar, the Central Public Works Department (CPWD—the construction arm of MoHUA) is executing the other four colonies—Kasturba Nagar, Thyagraj Nagar, Srinivaspuri, and Mohammadpur.
