Property consultant Cushman & Wakefield reports that Delhi-NCR experienced a 39% upswing in net office space consumption, reaching 2.4 million square feet during the first half of this year. This surge is primarily attributed to several substantial lease transactions within the region.
2015 Figures: In the corresponding period of January to June 2015, the net absorption of office space was 1.7 million square feet.
Cushman & Wakefield Report: According to the report, Delhi-NCR saw a net consumption of 2.4 million square feet during the initial six months of 2016, marking a considerable 39% increase compared to the same period last year.
Driving Factors: Cushman & Wakefield also noted that the overall upswing in real estate activities stemmed from the culmination of several large-scale deals occurring across the market.
Expert Insights
According to MD Anshul Jain stated that the resurgence of space in Noida, largely owing to its pricing advantages, is a noteworthy development in the NCR market. While Gurgaon maintains steady consumption levels, these significant deals in Noida could very well herald the next phase of growth for this particular region.
Adding to this, Mr. Jain highlighted that Noida possesses a thriving infrastructure and cost-effectiveness when compared to Pune and Hyderabad.
National Overview
The report further indicated that the consumption of office space experienced an 18% decline, settling at 14.5 million square feet during the first six months of 2016 across eight major cities, including Delhi-NCR, Mumbai, Kolkata, Ahmedabad, Pune, Chennai, Hyderabad, and Bengaluru.
Supply Dynamics in Delhi-NCR: Delhi-NCR witnessed a noteworthy 45% decrease in the supply of office space, plummeting to 2.7 million square feet between January and June 2016, a sharp contrast to the 4.9 million square feet recorded in the previous year.
Overall Supply Trends: During the comprehensive analysis of these eight cities, the supply of office space contracted by 7%, sliding to 19.9 million square feet from the previous figure of 21.5 million square feet.