NCR to witness 48 million sq ft new office space
NEW DELHI: The National Capital Region (NCR) is expected to witness an additional supply of 48 million sq ft of office space over the next three years which may lead to fall in rentals, realty consultant Knight Frank said.
The bulk of the office supply would come up in Gurgaon and Noida market, which might put a downward pressure on rentals. However, the rental values in Delhi are expected to rise on high demand and lack of new supply.
“In terms of office stock, the NCR is the biggest market in the country with nearly 85 million sq ft of office space under operation … The region has seen tremendous development in the past 5 years. Fast paced growth in the IT/ITeS sector has contributed hugely to the demand,” Knight Frank said.
At present, the vacancy levels range between 20-25 per cent across various micro markets in the NCR.
The consultant said that the NCR is expected to witness fresh office supply to the tune of 48 million sq ft in the coming three years.
“Bulk of the upcoming supply is slated to enter the NCR market by early 2013, primarily in the peripheral business districts of Noida and Gurgaon which may put a downward pressure on the rentals,” it noted.
The rental values in locations across the central business district (CBD) and south business district (SBD) in Delhi are expected to witness appreciation owing to anticipated office space demand and lack of fresh supply in these micro-markets, the consultant observed.
The average monthly rental in Gurgaon is around Rs 80 per sq ft and Rs 40 per sq ft in Noida. In Delhi, the rental is about Rs 160 per sq ft in CBD and Rs 130 in SBD