As per a recent report by the Colliers International India, the last quarter of 2018 witnessed the National Capital Region (NCR) recording a leasing volume of 2.2 mln sqft of office space.
“Despite rise in vacancy levels by end of the year owing to infusion of supply, rents are expected to rise led by demand in key business districts and premium buildings in cities of Gurugram and NOIDA,” said Vineet Anand, director, office services (NCR) at Colliers International India.
If we talk about the whole year through in 2018, Delhi’s office market recorded gross absorption of 770,000 sqft, while Gurugram witnessed gross absorption of 5.4 mln sqft. NOIDA’s office market witnessed record leasing activity in 2018 at 3.9 mln sqft.
Across NCR, IT-ITeS sector accounted for 24.1% of total leasing followed by banking, finance and insurance services (BFSI) sector with 16.7% and engineering and manufacturing which accounted for about 15.1% of total leasing.
In Delhi, Aerocity accounted for 29.3% of the overall leasing followed by the Central Business District (CBD) with 13.6%. The Secondary Business Districts (SBD) such as Saket, Nehru place and Jasola together represented 19.6% of the office space take-up.
Delhi has planned to see 3.9 mln sqft of office supply while Gurugram has a supply pipeline 24.6 mln sqft during 2019-2021. In NOIDA developers will look to complete their ongoing projects amounting to 14.4 mln sqft by the end of year 2021.
In Gurugram, the Cyber City constituted 21.7% of overall leasing activity, followed by Golf Course Extension Road (GCER) and Golf Course Road at 15.8% and 12.1%, respectively.
According to Colliers, cost-conscious occupiers with large space requirements may look towards NOIDA Expressway and Golf Course Extension Road because of lower rental values.