According to research, office space rent in the Delhi-NCR area increased more than threefold to roughly 1.5 million sq ft during the January-March period, owing mostly to increased absorption by IT businesses in Gurgaon.
Net absorption in the first quarter of the current calendar year increased dramatically to 1.48 million square feet, up from 4,63,900 square feet in the same period last year. Net absorption was 1.48 million square feet, up substantially from the same period last year, with IT-ITeS occupiers leading the way, followed by consultancy and engineering. Leasing renewal and relocations to similar-sized office premises are not included in net absorption.
The greatest net absorption was found in Gurgaon submarkets, followed by Delhi. In addition, almost 1 million square feet of space was which was before in Gurgaon by IT-ITeS and BFSI (bank, financial services, and insurance) tenants in the first quarters of 2014. However, the availability of office space inside the NCR region fell by 22% to 1.72 million square feet.
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1.8 Million Square Feet of Office Space Was Leased in Delhi-NCR During January-March, Representing a More Than 2.5-Fold Increase: Report
New Delhi, Apr 7 (PTI) – The net leasing of office buildings in the Delhi-NCR market increased and over 2.5 times to 1.8 million – square – feet between January and March, owing to the increasing demand from corporate entities and co-working operators. In the January-March quarter of last year, office leasing totaled 7,00,000 square feet. New office space supply declined 10% to 1 million sq. ft from 1.1 million – square – feet.
At the end of the previous month, the Delhi-NCR had an amount of inventory of office buildings of 118.7 million – square – feet. Gurugram topped office leasing activity in Q1 2022, accounting for about 72% of the market; DLF Cybercity ranked as the most desired micro-market. Vacancy remained constant, owing to consistent leasing in the face of limited supply.
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NH-48, Golf Extension Road, and Noida Expressway are projected to be the focus of future supplies in Q1 2022. During the first quarters of the 2022 calendar year, the vacancy rate for office space was 23.5%. The monthly rent was Rs 91.6 per square foot on average.
DLF, Brookfield, Bharti Realty, and Max group business Max Estates are among the prominent developers in Delhi-NCR that provide office space for leasing. DLF Cyber City Builders Ltd, a joint project between DLF and Singapore’s sovereign wealth GIC, owns and operates various office buildings in Gurugram. Brookfield, a worldwide investment group, has purchased a 51% share in Bharti Enterprises’ four commercial buildings, notably Worldmark in Aerocity in the country’s capital, for Rs 5,000 crore.
Max Estates has two commercial works: ‘Max Towers’ in Noida and ‘Max House’ in Okhla, Delhi. Max Estates has formed a joint venture the New York Life Insurance because of its third commercial project, Max Square, in Delhi-NCR.
According to a Collier’s analysis, gross office space leasing in the top six cities increased dramatically to 13 million – square – feet in January-March 2022 from 4.7 million square feet the previous year, while supply more than doubled to 14.3 million – square – feet from 7 million square feet. Colliers India monitors six cities: Bangalore, Chennai, Delhi-NCR, Pune, Hyderabad, and Pune. These six cities have a combined office space stock of 601 million – square – feet.
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Occupiers’ confidence has returned this quarter, with significant large-sized agreements accounting for a staggering 55% of leasing throughout the quarter. This demonstrates that office occupiers are combining offices to prepare for workplace-led cooperation and technology. This high leasing comes amid when Indian occupiers are reopening their offices to employees after just a two-year sabbatical.
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