Gurugram most sought after office space in Delhi-NCR: Report
The report, by CBRE which is an international commercial real estate and investment consultant, stamped the dominance of Gurugram in the office space leasing bracket in NCR with Golf Course Extension Road and Cyber City accounting for the maximum absorption, apart from Noida Expressway.Updated: Oct 12, 2018 16:16 IST
Gurugram witnessed maximum office space leasing activity in Delhi-NCR (National Capital Region), one of the five urban hubs of India that accounted for 80% activity in this bracket. Within the district, Golf Course Extension Road and Cyber City witnessed nearly half of such transactions in the third quarter of 2018 across NCR, making it one of the most sought after office destinations in the country.
The findings were a part of the report released on Thursday by the CBRE, an international commercial real estate and investment consultant.
The report stamped the dominance of Gurugram in the office space leasing bracket in NCR with Golf Course Extension Road and Cyber City accounting for the maximum absorption, apart from Noida Expressway.
Sanjay Sharma, a Gurugram-based real estate consultant said availability of Grade-A buildings was the reason major corporates and tech companies favoured the city over others. “There has been improvement in infrastructure, particularly network of expressways, which is helping,” he said.
The report also revealed that majority space was sought by tech firms, followed by engineering and manufacturing companies and co-working business operators.
As per countrywide data, tech corporates (with a share of 48%) drove office space take-up in the country during Q3-2018. They were followed by engineering and manufacturing companies (14%) and co-working/business centre operators (11%). These operators took up both primary and secondary spaces in primarily core locations. Other sectors such as BFSI (7%) also contributed to the increase in leasing activity.
In some good news for the realty sector, there was improvement in both sentiment and business in the office space market across the country, the report showed.
Leasing improved by 12% and touched 10.9 million square feet during the third quarter of 2018. However, office space leasing remained concentrated in Bangalore, Mumbai Hyderabad and Delhi-NCR region accounting for almost 80% of the activity across the country.
In comparison to the bounce in demand, the supply side has dipped in most of the cities particularly Delhi-NCR, Mumbai and Hyderabad, the report said.
“Sectors such as banking, financial services and insurance (BFSI), engineering and manufacturing, and agile/co-working/business centres are likely to account for a larger share in leasing activity going forward,” Anshuman Magazine, chairman, CBRE- India and South East Asia said.
In the third quarter, small to medium size transactions kept the market moving.
Rentals in micro-markets across Delhi-NCR remained stable during the quarter as most of the leasing activity was driven small to medium sized transactions (10,000 to 50, 000 sq ft).