Delhi-NCR continues its reign of being the largest office market in the country with an operational stock of 118 million sq. ft.
Despite being an attractive office destination and having the highest office stock in the country,
Delhi-NCR (National Capital Region) stands third behind Mumbai and Bengaluru in terms of yearly office space take ups. Mumbai and New Delhi, Dec 19, 2013: Knight Frank India today, launched its NCR office traction report focusing exclusively on the NCR market. The report talks about how the office market of a city with regard to new supply, vacancy trends, key tractions, industry wise absorption, micro-market split of absorption, rental trend and future outlook.
Key Takeaways
NCR office market exhibits strong traction despite economic uncertainties
Office space take-up during the first nine months of 2013 has marginally exceeded those of the same period in 2012.
Total absorption for the current year is likely to be in the range of 6.3-6.8 mn sq. ft.
Share of other service sectors has almost doubled compared to 2011 with consulting & Media companies largely contributing to the rise
Gurgaon remains at the forefront of both new office space and absorption in the market
PBD-Noida’s share has reduced by 25% compared to 2012 due to a fall in the number of IT/ITeS transactions
Speaking about the research report Mr. Shishir Baijal, Chairman & Managing Director, Knight Frank India said, “The NCR office market has remained rock solid amidst economic woes. The fact that office space take-up during the first nine months of 2013 has marginally exceeded that of the same period in 2012 clearly indicates strong fundamentals in the NCR office market. Considering the current run rate of transactions and the level of pre-commitments, total absorption for the current year is likely to be in the range of 6.3-6.8 mn. Sq. ft. which is commendable given the weak global and domestic economic scenario”.
Dr. Samantak Das, Chief Economist and Director-Research, Knight Frank India maintained,” TheIT/ITeS sector has been the primary driver of office space take up in the NCR market. While the beginning of the year showed a drastic dip in the sector’s share, demand picked up during the next two quarters, though it was well below the peak levels of 2011. Going forward, we expect the
sector’s share to grow given the green shoots of recovery in the western economies.”
About Knight Frank India: Knight Frank is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Grubb Knight Frank, operate from 330 offices, in 48 countries, across six continents. More than 12,500 professionals handle in excess of US$1 trillion (£643 billion) worth of commercial, agricultural and residential real estate annually, advising clients ranging from individual owners and buyers to major developers, investors and corporate tenants. In India, Knight Frank is headquartered in Mumbai. More than 800 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, and Kolkata, work with clients to offer a comprehensive range of real estate services across advisory (research, valuation and consulting); transactions (residential, commercial, retail, hospitality, capitals); facilities management; and project management.
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