Office space leasing up marginally in NCR despite slowdown
Dec 22, 2013
Source : The Economic Times

 

DELHI: Office space absorption in NCR, the largest office market in the country, is slightly higher at 4.9 million sq ft during January-September period of this year despite economic slowdown in India as well as globally, according to property consultant Knight Frank.

In the first nine months of 2012, office space absorption stood at 4.8 million sq ft.

"The NCR (national capital region) office market has remained rock solid amidst economic woes. The fact that office space take-up during the first nine months of 2013 has marginally exceeded that of the same period in 2012 clearly indicates strong fundamentals in the NCR office market."

Gurgaon remains at the forefront of both new office space and absorption in the market, the consultant noted.

"Considering the current run rate of transactions and the level of pre-commitments, total absorption for the current year is likely to be in the range of 6.3-6.8 million sq ft. This is commendable given the weak global and domestic economic scenario," the report said.

The consultant projected that the total absorption for the current year would marginally exceed the 2012 level.

"NCR is the largest office market in the country with an operational stock of 118 million sq ft of which 93 million sq ft is occupied, resulting in a vacancy of 21 per cent," Knight Frank said.

The consultant attributed the upward movement in vacancy due to an additional 20 million sq ft of office space in the year 2010 and 2011.

Knight Frank pointed out that even though there has been remarkable improvement in occupiers' interest this year, absorption levels still fall short by 20 per cent compared to 2011 when nearly 5.8 million sq ft of space was taken up.

A total of 173 transactions were recorded during January- September 2013 as against 163 transactions during the same period in 2012. The weighted average rental value stood at Rs 53/sq ft compared to Rs 56 in the year-ago period.

Majority of these big transactions took place in Gurgaon, clearly showing a preference for the market. Simultaneously, there was a notable rise in the number of smaller transactions with an area less than 5,000 sq ft due to increasing non-IT transactions.

Nearly 30 per cent of the absorption was contributed by the IT/ITeS sector which accounted for 1.5 million sq ft of office space during the first nine months of 2013, which is a substantial dip of 51 per cent compared with the same period in 2011.

On future outlook, Knight Frank said that leasing activity is expected to witness moderate improvement as corporates align their real estate strategies towards consolidation and relocation for cost benefits.

"Rental values are expected to move in narrow ranges as demand remains buoyant and supply is constrained especially in select micro-markets of Gurgaon," the consultant said.

Latest Realty News

Public Private Partnership: Bridging the gap
Dec 21, 2013
DELHI: Public Private Partnership (PPP) broadly refers to long-term, contractual partnership between the public and private sector agencies, specifically targeted towards financing, designing, implementing and operating infrastructure facilities and services that were traditionally provided by the public sector. PPPs are therefore “cooperative venture between the public and private sectors, built on the expertise of each partner that best meets clearly defined public needs through the appropriat
Connaught Place now 7th costliest for office space
Dec 21, 2013
DELHI: Connaught Place has slipped two notches to become the world’s seventh costliest office destination due to slowdown in the realty market and fall in rupee’s exchange rate, property consultant CBRE has said.
Infrastructure public private partnerships need more flexibility: Kamal Nath
Dec 21, 2013
DELHI: Urban development minister Kamal Nath called for a more flexible approach towards infrastructure projects in order to meet India's target of developing new infrastructure worth one trillion dollars over the next few years.
RBI to relax norms for takeover of infrastructure loans
Dec 21, 2013
DELHI: The Reserve Bank of India will soon relax norms for the takeover of infrastructure loans, allowing them to be treated as standard assets even if they are rescheduled during the process. Under the current rules, any rescheduled loan is treated as a non-performing loan (NPL) for which banks have to make provisions
Realty-high GSC to invest $1 bn in India over 3 yrs
Dec 21, 2013
DELHI: A slowdown in the real estate space does not seem to have dampened US-based private equity firm Golden State Capital (GSC), which has decided to invest close to $1 billion in India over the next three years through its real estate investment trust (REIT). It also expects to get its REIT listed on the Singapore stock exchange next year.
Realty firms seek priority sector status for low-cost housing
Dec 20, 2013
DELHI: After exporters, real estate companies are demanding a priority sector tag for loans to the low-cost housing sector.
Connaught Place seventh costliest office mkt in world: CBRE
Dec 20, 2013
DELHI: Connaught Place in Delhi has slipped two notches to become the world's seventh costliest office destination due to slowdown in the realty market and fall in rupee's exchange rate, property consultant CBRE said.
Lutyens' Delhi: Rentals shoot through the roof as rich line up to rent sprawling properties
Dec 20, 2013
DELHI: Guess what's the new fad among rich Indians? Renting a bungalow in the verdant Lutyens' Delhi, where the country's high and mighty live.
SBI slashes home loan rates by up to 0.4 per cent
Dec 20, 2013
DELHI: Two biggest housing financiers SBIBSE 0.60 % and HDFCBSE 0.71 % on Thursday cut home loan rates by up to 0.4 per cent for new borrowers, a day after the Reserve Bank kept its key policy rates on hold.
DLF completes sale of 74% stake in life insurance JV to DHFL
Dec 19, 2013
DELHI: Realty firm DLF has completed sale of its 74 per cent stake in the joint venture DLF Pramerica Life Insurance to Dewan Housing FinanceBSE 0.57 % for an estimated Rs 250-300 crore.

Latest Realty News Of State

Realty Talk's