NCR Office Real Estate – The Second Most Favorable Destination for Buyers

According to a recent study conducted on the office real estate sector in the country, the National Capital Region (NCR) observed an overall office leasing of ~7.9 million sqft in 2017, amounting to an 18% market share, next only to Bengaluru. Overall an increase of ~17 % in the office absorption was seen from 2016, when it had leased ~6.57 million sq ft.

For property buyers and investors, the NCR’s office real estate market emerges out as the second most-preferred destination capturing 18% of market share. Bengaluru has topped the list with 36% of market share. Finest properties in preferred micro markets, such as Aerocity, Connaught Place, Golf Course Road and Cybercity are set to knack superiority over the market average. There is clear tenant craving for best quality office, thus guaranteeing Grade A developments to cost premium over average market rents.

In regard to Delhi market, the leasing segment became aggressive in last year, which was complemented by strong unrefined absorption of 1.31 million sqft (0.1 million sq m), signify positive surge of 31% YoY. Aerocity came out as a leader in the overall leasing activity, with about 28% share shadowed by Connaught Place (CBD) (21%), Jasola (8%), and Okhla (7%). Other Secondary Business Districts (SBDs) micro markets such as Nehru Place, Saket, Bikaji Kama Place backed lesser number of transactions. In 2017, as a direct result of penchant among occupiers, Aerocity witnessed 17% YoY increase in rents. Other conventional SBD micro markets such as Saket and Nehru Place were wedged negatively and observed a 3-9% reduction in rents in 2017.

Gurugram: The city is still the preferred office space avenue in the National Capital Region (NCR) accounting for almost 57% share in overall leasing. The Gurgaon office market witnessed approximately 4.5 million sqft (0.4 million sq m) of leasing capacity in 2017, without pre-commitments and renewals, denoting a fringe increase of 5.1% YoY. The demand for Grade A office space was initially obsessed by technology companies, which added 41% in overall demand trailed by banking, financial services & insurance (18%), and engineering & manufacturing (12%). Besides, media and entertainment, fast moving capital goods (FMCG) and co-working operatives leased smaller office spaces that contributed to rest of the transaction value.

NOIDA: After perceiving a record year in 2016, Noida’s commercial office market witnesse drelaxing of leasing operations in 2017. Around 44% of the total absorption was observed in Sector 62-65 micro market followed by 26% for NOIDA Expressway and the remaining in the smaller micro markets such as Sector 16A and 18. According to a study done by Colliers Research, nearly 2.1 million sqft (0.1 million sq m) was leased in 2017, eliminating pre-commitments and renewals, expressing a 22% decline YoY.

In recent times, Noida region has witnessed some fabulous expansion in commercial real estate section. For buyers and investors, there is no dearth of great investment options to choose from. Whether you’re astart up, an IT firm, a BPO, or any other firm owner, these properties offer unmatched value from all sides. Some of popular name in Noida is spectrum@metro.