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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.

The government gave relief to the residents of Delhi – NCR as it gave an in-principal nod to the planned Greenfield Airport close to Jewar in Gautam Buddha Nagar amid a controlling board meeting which was held in New Delhi. On Tuesday, Mr Suryapal Gangwar, special secretary of civil aviation said the consent for this was given at the meeting on Monday which was attended by Principal Secretary of civil aviation Mr SP Goyal and some other senior authorities.

PricewaterhouseCoopers has prepared the point-to-point venture report and techno-economic feasibility report. According to the report, the obtaining of 1441-hectare land in eight towns is proposed for the air terminal which will be built as a public-private association.

Mr Gangwar also added that the approximate cost for the project is Rs 15,754 crores. He also noted that the work for the project will be taken up in four phases. The air terminal will have two runways with an ability to deal with cargo handling ability of 3 million metric tons for each year and 70 million travellers every year. Preparatory work on the undertaking had begun in April 2017 and it is a result of the coordination between the Center and the state that in-principle approval has concurred inside one year time, he said. He also said that the steering committee had given site clearance to the project on July 6, 2017.

The center has already appointed Yamuna Expressway Industrial Development Authority (YEIDA) as the nodal agency for this venture.