Real estate market in Delhi NCR up 22% in 2013

Written by Nayeem Showkat Khan | Updated: Jan 30 2014, 01:08am hrs
Stating that IT/ITeS remained the major occupiers contributing 50% of the total absorption, commercial space absorption in Delhi NCR witnessed 22% rise in 2013 as compared to 2012, according to a report by Colliers International.

The study reveals that 26% of the total absorption of more than 31 million sq ft across top 6 cities was contributed by NCR.

'Engineering and BFSI, together account for 25% of the total absorption. Of the 8.31 million sq ft commercial lease in Delhi NCR, 70% of the space was leased in Gurgaon, 23% in Noida and the remaining 7% in Delhi.

Gurgaon is expected to witness further segmentation of micro-markets in cost terms in 2014.

''Gurgaon is expected to witness a lot of lease renewals in 2014 and 2015, as companies that set up offices in 2004 to 06 (the first wave of occupiers) approach the end of their lease terms,'' report states.

However, as in 2013, sales volume and sale market of commercial space in Delhi will remain low and stressed.

There was a marginal 3% Year-on-Year decrease in rentals in Delhi. Average rental values in Delhi NCR will remain stable and vacancy rate will fall marginally.

''Gurgaon and Noida witnessed stable rental values during 2013 baring few micro markets such as Cyber city in Gurgaon and sector 18 in Noida which witnessed an increase of 7% and 2.5% respectively, on year on year basis,'' report adds.