Vacancy Levels Remain High in NOIDA

May 21, 2007	(2 votes, average: 4.5 out of 5)  Loading ...
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The commercial property market in Noida is seeing a slide in price, bucking the trend in the National Capital Region (NCR). However, this suburb near Delhi, has recorded a high vacancy level of 26.2% for its Grade A commercial buildings, or office space, in the first quarter of 2007.

Addition of large chunk of commercial space has given a boost to the commercial property in Noida, as per the data compiled by real estate consultant Jones Lang LaSalle. Around 1.2 million sq ft of commercial space had been added to the existing supply of 2.86 million sq ft. in Noida.

Noida has certainly undergone a difficult to fathom… transition. For that reason, property developers could have dared to bring big establishments here. Also, the city is growing by leaps and bounds in retail sector. Builders prefer to lease to one large conglomerate than to many small companies. Despite all this, there are potential tenants who complain of not getting apt space to set their operation centers, even though vacancy rates have increased.

As a result, Noida could not see any significant appreciation in its rental values from the previous quarter. The rental values seem to be consistent at Rs 45 per sq. ft. per month. As compared to Noida, Gurgaon, the boomtown of Haryana, continues to be driven by the expansion plans of existing companies. Also, this cyber town is likely to exhibit excellence over the next six months, reveals the report.

Talking about the Capital city, it is seeing a downfall in the vacancy levels for Grade A commercial property.
Some major reasons believed to be responsible for such a scenario include limited property supply, authorities’ failure to clear some of the unauthorized office space in the past few years.

Interestingly, Grade A commercial property in Delhi’s central business district is fully occupied for the fourth consecutive quarter.

As far as Grade B buildings in the district are concerned, they recorded low vacancy levels of about 3% during the quarter.

News Published Under:   Noida |

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