By: Ravi Sinha
Track2Realty Exclusive: Consultancy firm DTZ India believes with abundant quality supply scheduled in next 2-3 years and fast paced development of infrastructure, Golf Course Extension Road in Gurgaon and Greater Noida Expressway are the emerging markets for office space.
However, it maintains that NCR emerging as biggest office market does not mean financial capital is actually shifting from Mumbai to Delhi-NCR.
Aniruddh Wahal, Co-Head, ODM, DTZ-India says Mumbai continues to be the financial capital as the primary sector driving the office space take-up here is BFSI followed by IT/ITES. The primary driver for office space take-up in Delhi NCR continues to be IT/ITES.
“In addition to the per square feet ROI, it is also the nature of business that decides the location of the office. CBD is the preferred location for sales or front office whereas PBD is preferred for back office operations. The space requirement for sales/front office is lesser than the back office, hence CBD, with its limited availability of space, is good to accommodate small offices whereas PBD has good options for large quality spaces at lower rentals, hence more suitable for back office operations,” says Wahal.
Office occupier chart going up is also indicative of the fact that virtual office is yet to catch up in this part of the world. Pankaj Bansal, Director, M3M India has a reason behind this when he says virtual office as a concept is relatively weaker in north India as compared with Bangalore, Chennai and Hyderabad that have a strong concentration of ITES businesses.
According to him, like the Bandra Kurla Complex in Bombay, Gurgaon is Delhi’s emerging Alternate Business District or ABD. Such districts absorb the demand overflow from the main or traditional business districts (MBD or TBD) of any major city. This demand usually gravitates towards locations that offer better safety, connectivity, housing and social/civil infrastructure.
“Gurgaon’s close proximity to Delhi Airport, better housing, entertainment and police infrastructure (as compared with NOIDA) have made it a very attractive destination for many local and global companies (across many product categories) to locate their offices here. Gurgaon thus, can justifiably lay claim to being Delhi’s main ABD,” says Bansal.
…..to be continued
