The major 28% of the total commercial space across the country – 24 million square feet has been picked up by the National Capital Region (NCR) – mainly Gurugram and Noida in the first half of 2018.
Colliers International – a real estate researcher has prepared the report recording the office space absorption among the NCR cites and the report reflects that the biggest hike has been recorded for Gurugram, the Millennium City. Gurugram has absorbed 3.7 million square feet of commercial space in the first half of 2018, which is a 111% rise as compared to the property absorption recorded for Gurugram in the first half of 2017. The report also suggests that Gurugram’s office space absorption for the first half of the current year is at par with that of Mumbai.
On the other hand, a hike of 100% has been registered in office space absorption for Noida in the first half of 2018, as compared to the first half of 2017, which was recorded as 0.9 million square feet.
Mr. Navdeep Sardana, Managing Director, Elite Landbase Private Limited says, “Gurugram is often called the real estate hub and looking at the current scenario, this name fits perfectly. The major developments in terms of infrastructure, government policies are majorly contributing factors.”
Speaking about sudden increase in office space absorption in Noida, Mr. Navdeep adds, “If the figures keep going up the same way in the coming months as well, this year would be the one to record the highest commercial office spaces absorption in this area. The Metro railway infrastructure is giving the office market a boom”
The report prepared by Colliers International puts the figure to a 2 million square feet for the current year, largely been picked up by Landgis (Toshiba) Candor TechSpace (1,00,000 Sq. Ft. along Noida Expressway), Genpact-Candor TechSpace (90,000 Sq. Ft. along Noida Expressway), Syscom Solutions (90,000 Sq. Ft. in commercial sectors), Insta Office (85,000 Sq. Ft. in commercial sectors) and ACE Global (Arohant IT park 80,000 Sq. Ft. along Noida Expressway). However, the absorption is expected to reach 3.5 million square feet by the end of this year.
According to the report, the technology sector has been allocated 42% of the gross absorption, engineering and manufacturing sector t 23% and banking, financial services and insurance sector has been accounted for 15% in Noida. As per the report, there is a decrease of 13% in the rental rates in commercial sector as compared to the year 2017. In Gurugram, technology companies have been accounted for 33% of the total leasing volume, followed by banking, finance and insurance companies with 27% and flexible workspace operators with 20%.