NEW DELHI, Jan 23: The office market in Delhi-NCR remained active last year despite the COVID-19 pandemic, with Gurugram witnessing a nearly two-fold jump in gross leasing to 4 million square feet, according to Colliers India.
Gross leasing of office space in Gurugram stood at 2.1 million square feet during 2020.
Noida saw a marginal increase in gross leasing of office space at 2.1 million square feet during the 2021 calendar year as against 1.9 million square feet in the previous year. In Delhi, the absorption of office space remained flat at 2,00,000 square feet.
According to Colliers India report, the Delhi NCR office market overall recorded 50 per cent rise in gross leasing of office space to 6.3 million square feet in 2021 from 4.2 million square feet in the previous year.
Technology companies accounted for 40 per cent share in total leasing.
Led by growing demand for managed spaces from enterprises and start-ups, demand for flexible workspaces grew three-fold and inched closer to one million square feet in 2021.
Commenting on the report, Bhupindra Singh, Managing Director, Regional Tenant Representation and Office Services, North India, Colliers, said, “The overall absorption numbers indicate a strong desire for corporates to commit to the office segment and thereby showcasing that the WFH (work from home) is an interim option only”.
In Delhi-NCR market, DLF Ltd, Brookfield group, Bharti Realty and Max group firm MaxVIL are major real estate players that give office space on lease.
Coworking firms which have major presence in the NCR are WeWork, Smartworks, Skootr Global, The Executive Centre, Simpliwork, Awfis and The Office Pass among others.
Singh noted that office absorption in Noida has gained significantly since the onset of the pandemic as it is a very cost-effective location supported by superior infrastructure.
The quality of buildings is at par with any other development in the North, he added.
On the NCR office market, Skootr India Founder and Director Puneet Chandra said: “Corporate occupiers are looking for portfolio re-optimization and focusing on cost-effective, and ‘core + flex’ strategies for inculcating Work From Anywhere.”
According to Chandra, corporates are encouraged by flexible leases and low upfront cost in managed office spaces provided by coworking operators.
With an increase in demand for managed office space, Chandra said the leasing deal momentum has significantly gone up.
According to the Colliers report, the new supply of Grade-A office space in Delhi-NCR fell to 4.1 million square feet in 2021 from 7.5 million square feet in the previous year.
In Gurugram, the new supply declined to 2.8 million square feet from 4.7 million square feet. The office supply in Noida fell to 1.3 million square feet from 2.2 million square feet.
In Delhi, there was no new supply of premium office space in 2021. The national capital had seen fresh supply of 6,00,000 square feet in the previous year.
“Developers have remained cautious in bringing new supply due to elevated vacancy levels in certain micro markets,” Colliers said.
The consultant forecast gradual rise in office rentals this year due to the limited availability of quality stock. (PTI)
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