By: Ravi Sinha
Track2Realty Exclusive: It has been whispered in the real estate circle for quite some time, something that made the Delhi-NCR developers of office space smiling and their Mumbai counterparts worried. Amidst these MNCs and corporate looking forward to set-up their offices in India were wondering whether to go with the conventional wisdom of opting for the financial market of India or innovate with the new emerging financial centres in Delhi-NCR in general and Gurgaon in particular. Now the latest report of Knight Frank India has put to rest the speculation.
NCR is the biggest market in the country with nearly 88 mn.sq.ft. of office space under operation. Vacancy levels range between 20-25% across various micro-markets in the NCR. Most of the office supply has come up in the peripheral business districts of Gurgaon, Noida, Greater Noida and secondary business districts of Saket and Jasola.
The NCR is expected to witness new office space completions to the tune of 45 mn.sq.ft. in the coming three years. PBD-Gurgaon is one of the most sought after destination in the NCR, contributing nearly 43% of this supply. Noida Expressway in particular witnessed a lot of activity both in terms of new office supply and absorption in 2012.
Good connectivity, planned infrastructure and ample affordable housing options for employees are some of the key contributing factors to the growing commercial developments in this location. The proposed metro rail connecting Noida with Greater Noida will further enhance the connectivity of the sectors on the expressway and Greater Noida.
Even though sentiments remain cautious in the wake of the global economic scenario, we expect some green shoots of recovery considering the consolidation of domestic economic fundamentals and initiation of reforms. NCR is expected to witness steady absorption levels in the coming quarters
However, Mudassir Zaidi, Regional Director, North for Knight Frank India believes the trend has to be understood with the demand & supply dynamics of the given market.
In Delhi, due to limited supply vacancy is less and then space is not limited in the CBDs and hence PBDs are the traction point. He, however, does not find many takers for the virtual office here, thereby another reason of demand for office space.
“The need of the business as of now is physical space and we are sometime away from the reality of virtual offices. It all depends on the nature of the business, and in the given demand-supply dynamics, office space is in demand at the moment,” says Zaidi.
…..to be continued
