Wait...

Online Export Import Data Search

Recent Searches: No Recent Searches
Complete Training Video : Click Here

NCR accounts for 20% market share of annual commercial leasing volumes.


Date: 20-06-2018
Subject: NCR accounts for 20% market share of annual commercial leasing volumes
Improved infrastructure, enhanced metro connectivity, presence of premium buildings and new upcoming SEZ and non-SEZ supply continues to attract multinationals and corporate bodies across the globe to the  National Capital Region (NCR) that is now the second largest office market with 20 percent share of the annual nationwide leasing volume, says a report by Colliers Research.

As per Colliers Research, the NCR should retain its dominance in office demand over the next five years, it says.

While Gurugram is expected to remain the dominating office market in NCR, Noida is likely to be transformed into an affordable commercial hub, says the report. As for Delhi, redevelopment projects are expected to give a facelift to the overall Delhi commercial market, despite the initial buildings being primarily occupied by single- tenant state-owned companies, banks, and public-sector units.

Large occupiers are being more strategic in their real estate requirements, pre-committing space for future needs and optimising their real estate portfolios, the report says.

“Recent developments and economic growth in Delhi NCR have put the city on the global map, competing with other top notch cities in the world. NCR holds number two rank in terms of office space absorption among all key cities in India. Improved infrastructure, enhanced metro connectivity, presence of premium buildings and new upcoming SEZ & Non-SEZ supply continues to attract MNCs and corporate bodies across the globe”, says Sanjay Chatrath, Executive Director, NCR, Colliers International India.

A robust metro network

By 2020 most of the business districts in the NCR should be connected by the metro rail. Colliers mapped all the three-primary commercial micromarkets of NCR on the Delhi metro rail network and concluded that most of the commercial hubs in Delhi already have metro access. With the completion of Phase 4 of the Delhi metro rail network, all the office locations of Gurugram and Noida should have metro access within a 3.0 km (1.8 miles) radius over the next three years.

With the walk to work concept becoming increasingly preferred in the Corporate Real Estate (CRE) world, accessibility has become one of the significant decision- making factors for occupiers. As per Colliers, the robust metro network should be one of the major driving factors of office demand in the NCR.

Demand to follow Grade A supply

As per Colliers research, there is a trend where large occupiers are being more strategic in their real estate requirements, pre-committing space for future needs and optimising their real estate portfolios. Recently, large occupiers such as Gartner, Bank of America, Boston Consulting Group and Google have pre-committed to office space in upcoming Grade A properties.

In preferred micromarkets, demand is expected to follow Grade A supply in the upcoming years. Golf Course Extension Road with 30 percent of the total upcoming new supply, is a natural extension of the Golf Course Road micromarket. The Grade A buildings in GCR quote about Rs 100 to 200 per sq ft per month while in GCER the rents are in the range of Rs 45 to 75 per sq ft per month.

It is expected that the Noida-Greater Noida Expressway micromarket will gain prominence over the coming years due to the huge supply pipeline. About 64 percent of the total supply is concentrated along Noida Expressway. Unlike in the past, when the supply was chiefly catering to Information Technology and Information Technology Enabled Services (IT/ITeS) occupiers, the new supply in this stretch is more commercial in nature, serving corporate occupiers, says the report.

Flexible workspaces to remain in vogue

The flexible workspace segment in the NCR has been proliferating since 2015. Currently, flexible operators manage about 1.0 million sq ft (0.09 million sq m) of office space in the NCR. In our opinion, flexible workspaces are no longer considered as disruptors but rather as an integral part of modern-day CRE. Flexible workspaces started to appear first in the Delhi CBD around 2015-16 due to the lack of Grade A office spaces for smaller occupiers. Since 2017, the focus of operators has changed towards the larger markets of Gurugram and Noida. Players such as Wework, Cowrks and Goworks have recently leased large floor plates at strategic locations.

Special Economic Zones (SEZs) to be a magnet for technology occupiers

The NCR has approximately 9.0 million sq ft (0.9 million sq m) of new supply planned to be developed over the next five years. More than 70 percent of the upcoming supply is concentrated in Gurugram in micromarkets such as Golf Course Extension Road and Sohna Road. Noida accounts for only 30 percent of the upcoming supply, which is primarily concentrated at Noida Expressway.

Only 6.0 million sq ft (0.6 million sq m) is likely to be completed by 2020. To hedge against rent increases in their existing facilities, IT/ITeS occupiers looking to relocate, consolidate and expand in Gurugram will consider getting a good deal in office space strategically located in the state-of-the-art SEZ campuses on Golf Course Extension Road.

Gurugram to remain the dominating office market in NCR

Gurugram has been capturing about 60 per cent of the total regional office demand over the past five years. The demand for office space primarily comes from the technology, financial and manufacturing sectors which have shifted their corporate offices from Connaught Place and other parts of South Delhi area in pursuit of Grade A office space at affordable rents with good connectivity to the International Airport and other business districts of Delhi after the global financial crisis in 2008. Since then the city has become the favourite corporate office destination and has been experiencing demand from companies expanding. In Q1 2018, Gurgaon recorded 1 million sq ft of gross absorption accounted for about 26 percent of pan India absorption.

Noida to transform into an affordable commercial hub

Out of the overall leasing volume in the NCR over the past five years, Noida accounted for roughly 29 percent of the total demand. Notwithstanding the traditional image, the city is also gearing up to host a plethora of MNCs in upcoming years. The city witnessed 1.0 million sq ft (0.09 million sq m) of absorption in Q1 2018 which was almost double than Q1 2017 demand.

Redevelopment to give a facelift to Delhi's real estate market

National Buildings Construction Corporation (NBCCs) first project in Nauroji Nagar, supplying about 3.3 million sq ft (0.3 million sq m) of Grade A space is already at an advanced stage of construction. Due to its prime south location in the city, the first e-auction witnessed considerable success with bids from public-sector units such as Power Finance Corporation, Hindustan Petroleum Corporation Ltd. and Energy Efficiency Services.

The cumulative area sold was about 0.28 million sq ft (26,000 sq m) of office space. The average sales price was about Rs 38,000  per sq ft, which is 8 to10 percent higher than in Delhi’s CBD. The second tranche of the e-auction is planned to be conducted by the end of 2018. Colliers expects the redevelopment of these projects to act as a facelift to the overall Delhi commercial market, despite the initial buildings being primarily occupied by single- tenant state-owned companies, banks and public-sector units.

Source: moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 21-10-2020
Notification No. 38/2020-Customs
Notification regarding exemption of duties of Customs against scrips issued under the RoSL scheme for apparel and made-ups sectors.

Date: 21-10-2020
Notification No. 07/2020 – Central Excise
Notification regarding exemption of duties of Central Excise against scrips issued under the RoSL scheme for apparel and made-ups sectors

Date: 20-10-2020
Notification No. 37/2020-Customs
Seeks to further amend notification no. 152/2009 dated 31.12.2009, regarding the rate of duty of customs on imports of "Polybutadiene Rubber" originating in Korea RP and imported under the India-Korea Comprehensive Economic Partnership Agreement.

Date: 15-10-2020
Notification No. 99/2020 - Customs (N.T.)
Exchange rate Notification No.99/2020-Cus (NT) dated 15.10.2020- regd.

Date: 13-10-2020
Trade Notice No. 30/2020-2021-DGFT
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) for India’s Exports under GSP, GSTP, India-Malaysia CECA, India-Singapore CECA w.e.f. 15th October 2020

Date: 09-10-2020
Notification No. 39/2015-2020
Amendment in Export Policy of Onions

Date: 08-10-2020
Circular No. 44/2020-Customs
Procedure for inspection of ICDs/CFSs/AFSs -reg

Date: 08-10-2020
Notification No. 49/2020-Customs (N.T./CAA/DRI)
Appointment of CAA by Pr. DGRI

Date: 07-10-2020
Public Notice No.24 /2015-20
Revision of SION H-68, H-301 & H-302 of Export Products- Double Decorative/Single side Laminates with or without Barrier Paper

Date: 06-10-2020
Instruction No. 18/2020-Customs
Directorate General of Audit as a Nodal Directorate for Customs Post Clearance Audit –regarding



Exim Guru Copyright © 1999-2020 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001