Commercial spaces in Gurugram continue to see large investment inflows. Read on to know the latest buzz
Delhi NCR office market recorded gross leasing at 6.3 million sq ft in 2021, growing at 50 per cent YoY, indicating a clear revival in occupier confidence. It continued to build on the recovery begun in the second quarter of the year. On a quarterly basis, Q4 2021 witnessed the highest leasing since the onset of the pandemic at 2.9 million sq ft. Gurugram led the leasing activity accounting for 64 per cent share in overall transactions, shows a recent Colliers report. “Flight to quality is driving occupiers real estate strategy and Noida Expressway, Golf Course Extension Road and DLF Cybercity drove the bulk of leasing activity as they looked for better-quality buildings”; says a recent report on office space by Colliers. Bhupindra Singh, managing director, Regional Tenant Representation and Office Services, North India, Colliers, maintains, “India has shown remarkable progress in the second half of 2021 in comparison to y-o-y 2020. Both residential and commercial segments have showcased positive indices which is a good sign for the economy despite the lass of Q2 2021 due to the second wave. For North India, only the NCR can boast in terms of significant office absorption as the other major cities have not chosen office markets.”
The overall absorption numbers indicate a strong desire for corporates to commit to the office segment.
Start-ups scaling up in the city
Delhi-NCR saw the biggest spurt in space taken up by start-ups at about one million sq ft in 2021 amongst the larger markets in India. MG Road, Golf Course Extension Road, Sohn Road, Cyber City in Gurugram emerged as the most preferred micro-markets by these occupiers due to the availability of quality stock at relatively lower rents, excellent connectivity and proximity to the residential neighbourhood.
Rentals to firm up
Delhi NCR witnessed a supply influx of 4.1 million sq ft in 2021, a drop of 45 per cent YoY. Ousted rents for all the micro markets have largely remained unchanged from the previous quarter. Going forward, rentals in key micro markets like Cyber City, Golf Course Road are expected to see a gradual rise due to the limited availability of quality stock.
“It is important to note that pre-leasing commitments have been largely intact and there has been limited down-sizing activities by larger corporates. Completions during H1 2021 were recorded at 25.11 million sq ft, an increase of 75 per cent year-on-year, show that developers are confident of a strong revival in office leasing activity once business as usual Is reinstated. In the second half of the year, if the country can ensure that most of the active workforce gets fully vaccinated, the shift back to office premises will be more feasible and sustainable,’ concludesRahul Arora, head of Office Leasing Advisory, JLL India.
Source – Times Property