There has been a 70% quarter-on-quarter jump in corporate office space take-up in the Delhi national capital region in the June quarter at more than 8 million sq ft with Gurgaon accounting for about 73% of the transactions, according to a report by property consultancy CBRE.
The IT/ITeS sector remained the largest occupier of office space in the NCR during the June quarter, followed by the e-commerce segment, which accounted for about 30% of the total transacted space, emerging as another significant demand driver in the NCR, said the report.
NCR was the only market among all leading cities that did not see any new office supply addition because the entire inventory lined up for completion in Gurgaon and Noida during the quarter was pushed further into the second half of 2015.
"Going forward, quality development completions are expected to witness immediate leasing activity during the second half of the year, particularly in prime locations of Gurgaon. Moreover, the completion of the upcoming supply in emerging micro-markets is likely to add to the existing office stock in the short to medium term. Prime locations, however, shall continue to see a scarcity of supply resulting in rents firming up for the next couple of quarters," said Anshuman Magazine, Chairman and Managing Director of CBRE South Asia Pvt. Ltd.
The region, however, accounted for about 26% share of the total supply infusion across all leading cities for the first six months of the year; largely because of completions witnessed during the January-March quarter.
Steady occupier interest lead to a about 2-5% rise in rental values across most peripheral sub-markets in Gurgaon and Noida.