Changing Trends In Delhi Office Market

June 8, 2007	(Be the first to rate this story!)  Loading ...
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The capital values and rentals in Delhi continue to soar at a constant pace and are expected to accomplish new heights soon across the Central Business District. Considering the limited availability of grade A commercial buildings in the Capital, most companies are moving to Tier-II cities which certainly enjoy a number of benefits.

Taking secondary micro-markets into account, bulk of supply is expected from Jasola with further availability of commercial space in Bhikaji Cama, Saket, and other peripheral locations like district centres to bolster the continued demand for office space in Delhi. With an auction of commercial properties recently held in Dwarka, the new supply is likely to tap the market till the end of the current year.

There have been heavy pre-leasing activities to secure areas that are due to enter the market in 2007. The trend may continue in the medium term. According to the new master plan for Delhi introduced by the government, there is more supply planned to come up in the city. The plan allows mixed land use in residential areas which clearly underlines easy conversion of buildings earlier categorized as residential areas into commercial buildings.

Other peripheral areas in proximity to Delhi are also doing fairly well in terms of real estate growth. An ideal example to look at is NCR region where real estate activities have been largely fuelled by a large proliferation of IT/ITes companies. A number of multinational companies have taken land on lease here. The trend of pre-committed leasing is likely to continue with the new growth corridors of Sohna Road and Manesar.

Capital Values and rentals in NCR have shown stabilization in the last few months with no significant correction in short to medium period.

Then there is Gurgaon, the trendsetter for nearby locations. This cyber town of Haryana has witnessed notable transactions including space taken up by Glaxo Smitkline, Sitel, Ernst and Young, Hoenywell, Aviva Insurance and Reliance.

The twin cities of Noida and Greater Noida are also attracting large attention from corporates which are being bullish on expanding their horizons in national capital region of Delhi. With foray of large property developers new campuses size developments may add to the supply.

Noida has recently welcomed the entry of big corporate players like Cranes, Delta Capital Management, Radio Khaitan, Birla Soft, Tech Mahindra, and Magma Designs.

News Published Under:   Delhi |

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