Commerical space occupiers prefer Gurgaon and Noida over Saket and Vasant Kunj, says a new report
Due to better tax exemptions and incentives, most of the IT / ITES Companies are moving to new SEZ developments in the National Capital Region (NCR). Due to this movement, the demand for commercial real estate has grown, says a report titled Delhi Office Market Q2, 2010 by BNP Paribas Real Estate.
On the development side, most of the companies have announced projects in Gurgaon and Noida.
However, there is no new commercial project announcement in Delhi. A number of Government agencies are gearing up to auction certain land parcels in Delhi, which is likely to generate good interest especially from owneroccupier group, it said.
The investors are still cautious of investing in the region as the risk adjusted returns are below their expectations. With the massive improvement in road and rail infrastructure, it is expected that the region will attract investors attention in the next six months. The rental and capital values, however, are likely to remain the same till the end of 2011, the report said.
Central Business District The prices for Commercial Real Estate (CRE) increased in quarter two this year primarily due to demand from banking and financial services. The vacancy levels dropped to 5 to 6 per cent compared to 15 per cent in the first quarter this year for Grade A projects. The Grade A rentals saw a marginal increase, whereas other buildings saw an increase of 5 to 7 per cent. Alternate Central Business District Occupiers are preferring Gurgaon and Noida over Saket and Vasant Kunj.
There was no significant transaction in the Alternate CBD areas of Vasant Kunj and Saket and vacancy levels remained fairly low at 20 25 per cent and rental values also remained stable. Jasola District centre witnessed absorption in the range of 20,000 -25,000 sq.ft in the second quarter.
Secondary Business District Additional supply in the third and the fourth quarter will keep prices stable.
Office leasing was fairly inactive in these areas but may see some activities in the third quarter due to improved metro connectivity. The rentals and capital values were in line with the quarter one figures and may not see any additional increase in the third quarter because of additional supply which is expected in the third and fourth quarter.
Periphery Business District Prices remains stable due to continuous supply. The Gurgaon market has witnessed increased level of transaction activity with approximately 0.2 million sq.ft leased in IT parks and 0.25 million sq.ft leased in SEZ's in the second quarter. The rental values remained stable in Gurgaon and will not see any major increase in quarter as well mainly due to the supply. The Noida market also observed increased number of queries and transactions in SEZ. The rentals in Noida also were stable and showed no increase from the first quarter this year. It is expected that the rental values in the SEZ space will increase in the next six months. Delhi office market Improved demand levels across NCR Office space rentals stabilise in Q2 2010, but no significant increase Noida at par with Gurgaon for office space leasing .
|
