office space for rent in delhi ncr

Delhi office absorption picked up in Q1 2016, BFSI top contributor

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Office space for rent in delhi ncr

BFSI & IT-ITeS occupiers strengthen the office absorption

A confident approach from occupiers resulted in absorption of 0.34 million sq ft in Q1 2016, which is more than double, compared to last year’s same period of only 0.10 million sq ft. BFSI (72%) and IT-ITeS (21%) were the primary contributors of this demand, followed by Manufacturing (7%) and other sectors (1%). Connaught Place remained the most preferred micro market among occupiers; metro connectivity and proximity to government offices continue to trade well for this location. Office space for rent in delhi ncr Besides, a few deals were concluded in

emerging office market Aerocity, near the airport.
In this quarter, a trend was seen, where occupiers who are looking to expand within Delhi were acquiescent on the Grade B office spaces, where occupiers can avail bigger offi ce spaces at low rentals. Various small ticket size deals averaging about 9,300 sq ft, kept the overall lease market alive, of which a few notable offi ce deals were, lease of 150,000 sq ft by HDFC Bank in Ambience Corporate Tower Rohini at Rohini; 20,000 sq ft by Transaction Solution International in DLF Prime Tower located at Okhla; 19,000 sq ft lease by IDFC in Express Tower at ITO and another 16,000 sq ft lease by ICICI Lombard in Redfort Capital Towers by Parsvanath Group located at Connaught Place.Office space for rent in delhi ncr.
Research & Forecast Report Delhi | Offi ce April 2016
Source: Colliers International India Research Rental Values
*Indicative Grade A rentals in INR per sq ft per month **Connaught Place ***Netaji Subhash Place
MICRO MARKETS RENTAL VALUE*
% CHANGE QOQ YOY CBD** 180 – 450 0% -1% Nehru Place 180 – 250 0% 6% Saket 130 – 200 -7% 0% Jasola 90 – 130 0% -2% NSP*** 70 – 120 0% 0% Okhla 30 – 100 -4% 0%
Source: Colliers International India Research
INDICATORS Q3 2015 Q4 2015 Q1 2016 Q2 2016F Vacancy Absorption Construction Rental Value Capital Value
City Offi ce Barometer
9 Research & Forecast Report | April 2016 | <> | Colliers International
During the quarter, no new project/ parts of the project were completed or launched. In Delhi, more than 1.3 million sq ft of vacant offi ce space was available for fi t-outs, of which 32% was located in Netaji Subhash Place; 23% in Saket; 18% in Jasola; 14% in Nehru Place and 13% in CBD. Also there are two ongoing projects by Parsvanath Developer at Tolstoy Lane and K G Marg. Th ese projects are expected to be ready by the end 2016.
Rents in Delhied remained stable in Q1 2016 across all the micro markets except, Saket and Okhla where rents decline on average by 5% QOQ. Similarly, capital values remained stable across all the micro markets.
Colliers View, Office space for rent in delhi ncr
We expect similar momentum to continue in coming quarters; however the city has a very limited new supply in the pipeline, which will directly pull down the vacancy levels. Occupiers looking for expansion within Delhi limits will keep eyeing for options in the peripheral areas at low rents and longer lease period. Overall rents are expected to remain on the same levels in near term; however, few micro markets like Connaught Place, Jasola and Ohkla may see marginal appreciation due to limited supply.
Quarter Wise Absorption
Average Rental And Capital Value Trend
0.20
0.40
0.60
0.80
1.00
1.20
1.40
0.00
Million Sq.ft
2010 2011 Q4 Q3 Q2 Q1 2012 2013 2014 2015 2016 Source: Colliers International India Research.Office space for rent in delhi ncr
250
300
30,000 35,000 40,000 25,000 20,000 15,000 10,000 5,000 0
200
150
100
50
0
Rental Values INR Per SF Per Month
Captial Values INR Per SF
Forecast
Q1 2008
Q1 2009
Q1 2010
Q1 2011
Q1 2012
Q1 2013
Q1 2014
Q1 2015
Q1 2016
Q1 2017F
Q1 2018F
Source: Colliers International India Research
Key under construction projects
CLIENT BUILDING NAME AREA (sq ft) LOCATION LEASE / SALE HDFC Bank Ambience Corporate Tower Rohini 150,000 Rohini Lease Transaction Solution International DLF Prime Tower 20,000 Okhla Lease IDFC Express Tower 19,000 ITO Lease ICICI Lombard Redfort Capital Tower 16,000 Connaught Place Lease Bhushan Auto Finance Videocon Tower 15,310 Jhandewalan Lease
BUILDING NAME DEVELOPER AREA (sq ft) LOCATION POSSESSION NBCC Plaza NBCC Ltd. 1,300,000 Kidwai Nagar 2016
RPS Infi nia RPS Developer 1,200,000 Mathura Road 2016
Skipper House Govt. Trust 160,000 Barakhamba Road 2016
Top 5 Transactions of Q1 2016
Source: Colliers International India Research
Notes: 1. Offi ce Market: The commercial areas in New Delhi can be broadly classifi ed into the CBD (Connaught Place), SBD Nehru Place, Bhikaji Cama Place, Netaji Subhash Place, Jasola and Saket . 2. Rents/Capital Value: Market average of indicative asking price for Grade A offi ce space. 3. Available Supply: Total Grade A offi ce space being marketed for sale or lease in surveyed quarter. 4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter. 5. All the fi gures in the report is based on market information as on 25th March 2016.

 

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