DELHI: Absorption of prime office space in the National Capital Region (NCR) grew around 14% in the October-December 2013 quarter compared to the previous quarter, touching 1.7 million sq ft, according to property consultancy CBRE. The previous quarter saw a total leasing of 1.5 million sq ft.
In the quarter nearly one million sq ft of new office space was added to the NCR market, taking the total supply for the year ended December 2013 up to about 3.5 million sq ft.
This fresh office space addition in the October-December 2013 quarter grew by nearly 200% over the last quarter's supply addition of just 300,000 sq ft. The commercial office space segment gained traction in Gurgaon with close to 0.25 million sq ft of fresh supply addition on the Golf Course Road while no new supply addition was seen in Noida during the same period.
"Transaction activity in the NCR was mostly led by the peripheral micro-market of Gurgaon, which saw about 1.3 million sq ft of office space getting leased during the quarter," says Anshuman Magazine, chairman and managing director, CBRE South Asia.
Most of this space, he says, was leased by the IT/ITeS segment, while the rest was taken up by the commercial segment.
"Noida observed a decline in demand for Grade A office space, with absorption recorded at around 0.2 million sq ft during the fourth quarter. Leasing activity was mostly concentrated along the Noida Expressway area, accounting for more than 65% of the leasing activity in Noida during the October-December 2013 quarter," he added.
According to CBRE, rental values remained largely stable across most micro-markets of Delhi in the quarter compared to the previous quarter. Some rental appreciation was witnessed in Gurgaon's DLF Cyber City due to sustained demand while rentals reduced slightly on Golf Course Road due to fresh supply addition in the micro-market. Rentals in Noida remained under pressure because of subdued demand.