The average rental for office space remained stable in Delhi-NCR during the first six months of this year although Gurgaon and Noida saw marginal rise in rents, according to property consultant JLL India.
Office rent increased 5 per cent in Noida and 1 per cent in Gurgaon, respectively.
Gross rentals in the Delhi-NCR market remained static in the first half of 2016 compared to the same period of 2015.
“At Rs 77 per sq ft per month (on a stock-weighted basis), the third largest office market in India – in terms of stock – showed no appreciation in city-level average rents,” JLL India CEO – Operations & International Director Santhosh Kumar said.
Among micro-markets, Gurgaon and Noida saw a marginal rise in rentals with average rents increasing to Rs 75 in Gurgaon, and Rs 43 per sq ft in Noida, clocking a year-on-year increase of 1 per cent and 5 per cent respectively.
“The relatively affordable rents in both Noida and Gurgaon micro-markets make them maintain their attractiveness for IT/ ITeS players,” Kumar said.
In terms of having the most grade-A office stock, Gurgaon micro-market leads the way followed by Noida and Secondary Business Districts (SBD).
“Delhi city has limited grade-A supply. The emergence of Gurgaon and Noida as key office corridors was largely due to lack of adequate land limiting the development potential in Delhi city.
“Also, the main city of Delhi has often seen developers employ the strata sale model while lease model is more prevalent in the suburban locations, which makes the latter more attractive to large occupiers,” JLL said.