Market Segmentation presents a holistic view of the target market to businesses by dividing a broad market of existing and potential customers into smaller or more defined categories. Despite the growing popularity of one-size-fits-all products in the market in recent years, offering premium quality and customized products catering to the needs of particular segments provides distinct advantages. Knowing who the target market is, what they want, and how they behave can be crucial in crafting bespoke offerings. It allows real estate companies to identify opportunities, gauge their potential, and make strategic decisions. According to Dun & Bradstreet, a focused and targeted marketing approach helps identify the most receptive audience, increasing customer engagement and leading to a higher return on investment (ROI). These targeted campaigns save the company time, money, and resources.
As real estate markets have evolved, commercial real estate developers have become more attuned to the diverse, specialized demands of various market segments. This awareness has led them to create a broad portfolio of tailored solutions tailored to meet these needs. Several commercial properties in Delhi and even office space in Noida have been developed with this strategy at the forefront. Let’s explore the different kinds of market segmentation and how they can contribute to the further growth of the burgeoning commercial real estate market in Delhi NCR.
Demographic Segmentation
It is a segmentation process that involves dividing a target population into smaller groups on the basis of specific criteria such as age, gender, occupation, income, or industry. This approach helps developers customize their propositions according to the expectations of each segment.
For instance, early-stage businesses and startups typically consist of individuals under 40 with moderate to low initial capital. Commercial real estate developers can target this demographic by offering flexible, cost-effective office spaces such as co-working environments or small office suites. Features like short-term lease agreements, shared amenities, and high-tech infrastructure (fast internet, meeting rooms, collaborative spaces) also attract this group. On the other hand, established companies and large corporations tend to house a wide workforce ranging from low/moderate-income regular employees to high-income executives. For this demographic, real estate developers can focus on Class A office buildings in central business districts. These spaces should have premium amenities such as high-end design, premium tech integration, ample parking, security systems, concierge services, and large meeting facilities. All of Max Estates’ commercial properties in Delhi NCR are Grade A+ developments offering quality workspaces across the region.
In recent times, India’s office leasing activity has been catalyzed by an increasing number of GCCs in the country. According to a recent joint study by CBRE and Zyoin, the GCC workforce in India is expected to reach 2 million by 2025, with over 200,000 job opportunities across industries. In order to accommodate this growth, these institutions are looking at both conventional and flexible workspaces, with a preference for high-quality, tech-integrated workspaces and expansive campus developments. As an emerging business hub, Noida has attracted numerous GCCs, fostering a significant influx of talent and offering ample opportunities for growth. As a result, developers are rapidly leasing out office space in Noida in large numbers to meet these growing demands. Approaching this ripe market with the right strategy can prove to be extremely beneficial for commercial real estate developers, and this is where market segmentation comes into play.
A successful example of demographic segmentation in the residential sector is our foremost project—Estate 360. It is Max Estates’ one-of-a-kind intergenerational residential development, a third of which has senior living residences with amenities and offerings tailored for older adults. While this is a residential example, it illustrates how understanding age-based preferences can lead to crafting more personalized real estate solutions, enhancing consumer satisfaction and market relevance.
Geographic Segmentation
Geographic segmentation, the most commonly used tactic, divides the market based on location and helps real estate companies identify high-potential areas for development. Within the real estate industry, location is a key priority for most buyers, investors, and tenants. Moreover, the location of a business determines access to resources, clients, and workforce, and thus, it is even more significant within the commercial real estate sector. Max Estates’ commercial developments are all set in prime business districts to fulfill the business needs of all our clients. With Max Towers on the Delhi-Noida border, Max House in the heart of South Delhi, and Max Square on the Noida-Greater Noida Expressway, our developments offer ease of access and connectivity across NCR.
According to Cushman & Wakefield’s market report, NCR witnessed gross leasing volume (GLV) of 3.7 msf in Q3 2024 – a 6% growth on a quarterly basis and 10% growth as compared to a similar period last year. Noida Expressway alone contributed 14% to the overall GLV in NCR in Q3 2024, consequently bringing to light the significance of geographic locations for businesses. With the upcoming Jewar International Airport, Noida is witnessing an increase in investments, both private and public, which is further contributing to the area’s popularity. Today, office space in Noida and surrounding regions can prove to be very beneficial for the growth of a business, and therefore, commercial properties in Delhi NCR are on the rise.
Psychographic Segmentation
This segmentation goes beyond surface-level categorizations and dives deeper into the psychology of the target market. Through this approach, developers can create amenities and offerings that truly connect with their consumers. The current office market comprises two generations—millennials and Gen Z— and it is these two generations that shape the commercial real estate market.
According to the World Economic Forum, over a third of the global workforce will be made up of Gen Zs by 2025. A survey done by the RPG group reported that 64% of the office-going Gen Z population preferred flexible workplace options, while 61% of them preferred companies that valued employee well-being over high salaries. It is safe to assume that in the coming years, while traditional office spaces will continue to be important, there will be a growing trend towards flexible work environments. Work-life balance remains paramount for both Gen Zs and millennials, topping their list of priorities when choosing an employer. Moreover, the inclusion of eco-conscious practices in building design and practices within the workplace has also become a huge priority for both investors and professionals. Real estate developers in NCR are increasingly focusing on incorporating these factors into their commercial properties in Delhi and office space in Noida.
Traditionally, the real estate industry has been primarily property-focused, but market segmentation shifts the focus to the customer by considering their specific needs and preferences. This approach allows developers to price their properties more effectively and accurately, maximizing profitability. Additionally, by analyzing the behavior and preferences of different market segments over time, real estate professionals can identify emerging trends, such as changes in demand for particular property types or locations. These insights can help inform strategic investment decisions and optimize future development plans.
