A new report on the latest developments within Delhi’s property markets has suggested that businesses from the IT sector are becoming increasingly active and are looking for more and more office space in the National Capital Region (NCR).
The local office sector is characterised by “micro-markets”, Knight Frank has explained, because supply in the NCR became so constrained in the years prior to the global economic downturn. Recent years saw notably less growth in the Indian economy and Delhi’s office market struggled as a result.
However, there are now thought to be reasons for optimism in terms of creating greater stability within the city’s commercial property industry, with companies from various IT-related sectors very much at the forefront of the recovery.
A statement on the subject from Knight Frank’s newest research read: “During 2010, leasing activity in the NCR was observed to have been rising, with the IT and BFSI (banking, financial services and insurance) sectors seeking out new office space to either initiate or expand their business operations here.
“A healthy absorption across micro-markets also led to a marginal improvement in the rentals.”
Elsewhere in India, office space in Mumbai’s central business district around Nariman Point was rated as being the sixth most expensive office market in the world, behind the likes of Hong Kong, central London and Tokyo.
Editor’s notes: In Q1 2023, there was 138.9 million square feet of office space stock within the whole Delhi-NCR market and the vacancy rate was 22%.
There were 12 established micro-markets across the region with rental rates ranging from 30 to 425 INR per square foot per month across them.
The micro-markets in the region were as follows:
Delhi-NCR Micro-Market
| Q1 2023 Office Rental Rate Range (INR/Psf/Per Month) |
Delhi CBD | 120-425 |
Delhi International Airport Limited | 225-250 |
South and South-East Delhi | 90-200 |
Delhi Others | 60-170 |
Gurugram CBD | 115-118 |
Gurugram-MG Road | 95-150 |
Gurugram-Golf Course Road | 95-200 |
Gurugram Other | 45-135 |
NOIDA Expressway | 50-75 |
NOIDA Sector 16, 16 A/B, 18 | 50-140 |
NOIDA Sector 62 | 50-65 |
NOIDA Others | 30-65 |
In Q1 2023, two of the largest office space deals in the NCR region were with serviced office space and coworking providers Incuspaze and Smartworks, which leased 345,000 square feet and 220,000 square feet of office space respectively.