Delhi Commercial Property Demand Increases
Global Property Consultant DTZ has provided information pertaining to the demand for commercial property in Delhi-NCR from IT/ITeS Sector leading to a 11% increase in office space absorption to 1.38 million square feet in the April-June quarter of 2014. Rentals, however are still minimal and the quarter on quarter analysis actually shows that the absorption decreased by 18%.
DTZ has stated in its report titled ‘Property Times Delhi NCR Q2 2014’ that, “office space in Delhi NCR witnessed total take-up of 1.38 million square feet in Quarter 2, representing a decrease of 18% quarter-on-quarter but an increase of 11% year-on-year.”
DTZ has described ‘floor-space’ to be the property that is taken into possession for the purpose of occupation for both offices let to an eventual occupier and developments pre-let or sold. A symbol that the economy is slowly coming out of a melt-down is the 81% total take-up space by the primary demand drivers IT/ITeS companies in quarter two, which is much greater than the take-up space of 36% in quarter one.
Realty experts are of the impression that an unwavering and resolute government is the key to helping real estate market matters improve. As compared to the total absorption rate of 26% in quarter one., 60% of the total absorption in quarter two was a result of transactions involving around 100,000 square feet worth of office space.
IT and ITeS sector were both responsible for the 5% quarter on quarter increase in demand for space in Gurgaon, while both Noida and Delhi witnessed a quarter on quarter commercial space demand decline. However, Delhi and NCR did benefit from the 75% increase in project completions in the second quarter over the previous quarter. However, quarter two brought about a vacancy rate of 32.6% as a result of new market spaces, which is an increase from quarter one vacancy rate of 28.9%.
Source: Hindustan Times
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