Gross letting of office space in the Delhi-NCR market jumped more than 2.5 times to 1.8 million sq.ft from January to March on improved demand from businesses and operators of coworking, according to Colliers. Office rental was 7,00,000 square feet in the period January-March last year.
New office supply fell 10% to 1 million square feet from 1.1 million square feet. The Delhi-NCR has a total office stock of 118.7 million square feet at the end of last month.
“Gurugram led the office leasing business accounting for nearly 72% share in Q1 2022; DLF Cybercity has emerged as the most preferred micromarket,” Colliers India said in its Delhi-NCR Office Market Snapshot for Level A properties (premium). Vacancy has remained stable, thanks to steady rentals amid moderate supply, he added.
“Upcoming supply in the first quarter of 2022 will likely be concentrated on NH-48, the Golf Course Extension Road and the Noida Expressway,” Colliers said. The office vacancy rate stood at 23.5% in the first quarter of calendar year 2022. The average monthly rent stood at Rs 91.6 per square foot.
In Delhi-NCR, the major developers that provide rental office space are DLF, Brookfield, Bharti Realty and Max Group Company Max Estates. DLF Cyber City Developers Ltd, which is a joint venture between DLF and Singapore’s sovereign wealth fund GIC, owns several office buildings in Gurugram.
Recently, global investment firm Brookfield purchased a 51% stake in Bharti Enterprises’ four commercial properties, including Worldmark at Aerocity in the nation’s capital, at an enterprise value of Rs 5,000 crore. Max Estates has two commercial projects – ‘Max Towers’ in Noida and Max House in Okhla, Delhi. Max Estates has partnered with New York Life Insurance Company for its third commercial project in Delhi-NCR named Max Square.
Coworking companies that have a major presence in the NCR include WeWork, Smartworks, Skootr Global, The Executive Centre, Simpliwork, Awfis, and The Office Pass, among others. According to the Colliers report, gross rental of office space in the six major cities rose sharply to 13 million square feet in January-March 2022 from 4.7 million square feet a year ago, while supply doubled to 14.3 million square feet from 7 million square feet. feet.
The six cities monitored by Colliers India are: Bengaluru, Chennai, Delhi-NCR, Pune, Hyderabad and Pune. The total office inventory in these six cities is 601 million square feet. “This quarter has seen occupier confidence decline with significant large-scale transactions accounting for 55% of leases in the quarter. This clearly shows that occupants are consolidating their offices as they prepare for innovation and collaboration in the workplace. Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, said Colliers.
The strong hire comes at a time when Indian occupiers have started to open their doors to employees after a two-year hiatus, he added. “The second quarter of 2022 will be a critical time as we expect more businesses to open workplaces. If the overall rental momentum continues, 2022 is likely to be a promising year,” Nair said.
First post: STI