In Delhi-NCR the office space absorption rose by 11 % to 1.38 million sq.ft during April-June quarter, over the year ago period, high demand form IT/ITes sector. However, the absorption drop by 18 % when compared with the previous quarter.
Office space in Delhi-NCR observed total take up of 1.38 million sq.ft in quarter 2, signifies a decrease of 18 % q-o-q( quarter on quarter), but an increase of 11 % y-o-y (year no year),” DTZ added in its report ‘Property Times Delhi NCR Q2 2014’.
IT/ITES sector was the major demand driver, accounting for the wide majority (81 %) of the entire take up in Q2, compare to 36% in Q1.
“Specialised domains like telecom, BFSI and aviation have shown a high demand,”DTZ said, adding that the demand is likely to uplift in the second half with corporate expected to raise hiring activities. Transaction of more than 1 Lakh sq.ft accounted for 60 percent of total absorptions in Q2 against 26% in Q1.
“Multinational based out of Europe accounted 60% of demand over the quarter, 16 % in the previous quarter. On the other hand Multinational based out of US and India contributed 10 % and 11 % ,'” STZ said.
Furthermore, Gurgaon witnessed a 5 % q-o-q increase in demand for space, primarily from IT/ITES domain. While Noida and Delhi saw a q-o-q drop. And rentals remained steady in all micro markets in q2 because of new supply.
Rentals are not expected to see vital growth because of the high vacancy levels and robust development pipeline despite expected growth In demand during the second half.
On supply, DTZ witnessed a 75% rise in the project completion in Q2 against earlier quarter.
On supply, of 5.3 million sq ft become operational in Q2 across thirteen projects in PBD and EBD region.
And due to additional new space in the market, Q2 stood at 32.6 percent against 28.9 percent in Q1. Vacancy in Q2 was 28.9 million sq ft as compared to 24 million sq.ft in the previous quarter.
And as far as the vacancy is concerned, Noida offer 37%, Gurgaon contributes 32% while Delhi put forward 30%.
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