As indicated by Colliers International India, more than 44 million sq ft of new office supply is at different phases of development in the National Capital Region (NCR). Around half of this new supply will come in Noida while the remaining is distributed among New Delhi (8%) and Gurugram (40%).
While the overall gross office uptake in Gurugram stood at 1.72 million sq ft in the first quarter of 2018, Noida recorded about 1.01 million sq ft of gross absorption amid the said quarter. In Delhi 0.26 million sq ft of gross absorption was recorded, as indicated by company’s examination.
Delhi
In Delhi, Leasing Activity stayed repressed amid Q1 2018, as just 0.26 million sq ft of gross absorption was recorded denoting a 21% decline year-on-year.
Most of the office space supply was taken by the engineering and manufacturing sector. It accounted for 38% share of the total leasing volume.
The vacancy rate in Delhi is probably going to stay within the scope of 10-11% over 2018-2020 while rents of premium buildings may increment by 5% every year over the following three years.
An Inventory inundation of around 3 million sq ft might be seen by the region over 2018-2020.
Gurugram
In Gurugram, the vacancy level is probably going to stay high over 25% notable supply pipeline in peripheral micro-markets over 2018-2020.
As expected by Collier, rents will stay under strain in decentralized areas, whereas premium areas may see 4-5% expansion over 2018-2020. Capital values may go up marginally 4-5% more over 2018-2020 because of increased interest from Institutional Investors, as indicated by research report.
Noida
Noida recorded around 1.01 million sq ft of gross absorption which was twofold than the Q1 2017 absorption levels.
Technology part represented 25% of the total absorption, trailed by budgetary sector which represented 20% of the take-up.
Colliers expects that normal vacancy rate in Noida will stay high at over 25% over 2018-2020 because of a hearty supply pipeline.