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Delhi NCR gross office leasing at 2 mn sq.ft. in H1 2021: Savills India
The National Capital Region (NCR) witnessed gross office absorption of 2.0 mn sq.ft. in H1 2021, a decline of 38 pc as compared to the same period previous year, according to global property consultancy firm Savills India’s latest report titled – India Market Watch Office – H1 2021.
Key Highlights of H1 2021
Delhi NCR saw an additional supply of 4.0 mn sq.ft. recording a decline of 12% compared to H1 2020
Noida Expressway and Golf Course Extension road in Gurugram noted significant completion contributing 90% of the total new supply in H1 2021.
Golf Course Extension Road witnessed notable completions with 1.35 mn sq.ft compared to 280,000 sq.ft. in H1 2020. Meanwhile, Delhi also saw rise in new supply by 33% YOY at 350,000 sq.ft.
The vacancy rate increased to 22.5% at the end of H1 2021
The average rental values in Delhi NCR have declined by approximately 3% YOY
Of the total leasing by technology occupiers, about 52% of take-up was concentrated in Noida Expressway and Golf Course extension road micro market
Delhi NCR’s demand in H1 2021 is mainly driven by occupiers in the Technology and Engineering & Manufacturing sectors, which constituted 47% and 15% share, respectively
BFSI demand share dropped drastically to 7% from 19% compared to H1 2020
Co-working/flexible workspace remained bearish and constituted only 4%
Outlook
Office leasing is likely to be at similar level as 2020, and therefore expected at approximately 4.5 mn sq.ft. for the year 2021
On the supply side, Delhi NCR has a strong pipeline of around 7.7 mn sq.ft. in H2 2021, of which over 50% is likely to be completed in Noida, and the remaining in Gurugram.
Technology, BFSI, consulting and manufacturing occupiers are likely to lead the demand in 2021.
Overall stock in Delhi NCR is expected to stand at 134.7 mn sq.ft. at the end of 2021
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