Rentals within the National Capital Region are poised for stabilization in the upcoming quarter, attributed to a notable increase in supply in both Gurgaon and Noida. As per findings from CB Richard Ellis, a recognized commercial real estate services firm, the rental market appears set for steadiness owing to the substantial rise in supply expected in these areas. In contrast, Delhi is not anticipating any significant alterations in supply levels, barring a notable exception in Jasola where an additional 500,000 square feet of space is projected to be introduced in the second quarter.
In the Central Business District of Connaught Place, rental values exhibited a steady ascent during the first quarter of 2008, largely due to the absence of new supply. The report highlighted a trend within the last quarter where several older buildings made concerted efforts to enhance infrastructure on their premises, keen to capitalize on the diminished available supply and soaring rental prices.
Meanwhile, in the peripheral markets of Gurgaon and Noida, the rental situation is forecasted to stabilize in the next quarter, with Gurgaon showing resilience in the previous quarter's rental rates. Although additional supply on the MG and Golf Course Road is expected to mitigate corporate demand, rentals are anticipated to remain relatively stable. Noida, which saw a slight uptick in rentals last quarter, is now predicted to maintain stability, particularly with a high volume of supply emerging in industrial and institutional sectors.
Notably, Noida retains its appeal as a prime destination for IT and ITeS companies, focusing primarily on their back-office operations. The report suggests that absorption rates in Noida could witness a significant surge this year, driven by enhancements in infrastructure.