Gurgaon Led The Demand For Office Space

With the current boom in gurgaon real estate, demand for office space in gurgaon is increasing. In the NCR, Gurgaon led the demands for the office space. According to the DT Debenham Tie Leung report, Gurgaon accounted for about 63% of the total absorption of commercial space in the first six months with a total of 3.2 million sq ft. Over 4.4 million sq ft of office stock has been leased over the past 12 months.

The report said, due to the increased demand and shortage of supply in the short term, rentals have increased by 44% in the past year in this region. Notable transactions in Gurgaon this year, according to the report, included IBM leasing 500,000 sq ft, SAP leasing 100,000 sq ft, Satyam 85,000 sq ft and PWC leasing 75,000 sq ft. IBM currently has a total commitment of about 8,00,000 sq ft of leased space in Gurgaon.

At the same time, Central Business District of Connaught Place and Secondary Business District (SBD) are attracting corporates due to their improved connectivity and attractive location. The Connaught Place with limited supply of Grade A space has witnessed absorption of only 81,800 sq ft this year, the report said.

Banks, financial institutions and consultancy firms with a high consumer orientation dominate this demand. Due to limited supply and increasing commercial demand , rental values have increased by as much as 51% in the past one year and are touching Rs 250 per square feet per month in some select buildings.

Noida has absorbed approx . 1.4 million sq ft this year itself. Noida has traditionally housed larger occupier owned operations of 100,000 sq ft plus. Most firms have taken up space in grade B industrial buildings. Some IT / ITES companies have preferred to go to institutional sectors in Noida, usually constructing their own buildings.

There is now an increasing trend of Grade A commercial buildings being developed in Noida, said the report . Notable transactions this year in Noida included Hewitt Associates leasing 175,000 sq ft, Momentum Technologies leasing 100,000 sq ft, Fiserv leasing 100,000 sq ft, HCL Technologies leasing 271,000 sq ft and Freescale purchasing buildings measuring 205,945 sq ft.

The demands for commercial space rose in other cities also. In Banglore, absorption of grade A commercial space in the first seven months of 2006 is seven million square feet as against 9.28 million sq ft in whole of 2005.

Source://Economictimes