In a revealing report, global realty consultant CBRE revealed that office rentals in Gurgaon have suffered a notable decline of up to 8% during the second quarter of 2008. This downturn is primarily attributed to an increased supply of available office space and a softening of demand.
Commenting on the market shift, CB Richard Ellis illuminated how, in the last quarter, rentals in Gurgaon's office and IT sectors experienced a correction of 5-8%, diverting from their peak rates. This shift is further evidenced by the common monthly rental rates for office space, which have adjusted from Rs. 105 per sq. ft. in March to Rs. 95 per sq. ft. in June.
Looking ahead, CBRE forecasts continued pressure on rentals over the next few quarters due to the notable anticipated additions to the supply of office space in Gurgaon.
Despite this, certain areas in Gurgaon remain attractive for office space leasing. These include MG Road, Golf Course Road, and the DLF Cyber City area. The appeal of these locations is largely due to factors like their proximity to National Highway-8, accessibility to the Airport, and their strategic position on the proposed Delhi Metro route.
Shifting our focus to Noida, the consultant highlighted its continued viability as an option for cost-conscious IT/ITeS companies. This is due to the increased availability of office space options at competitive pricing and the accessibility of locations from East and South Delhi.
Additionally, the report notes that Noida has been witnessing robust demand and increased leasing activity in recent quarters. This trend is exemplified by the Noida Authority's recent auction of a commercial plot measuring 95 acres, which was procured for a record price of Rs. 5,006 crore by BPTP. This transaction further solidifies Noida's position as a thriving market for commercial real estate.