In Q1 2018, Noida has recorded about 1.01 million sq ft of gross absorption, however, in Gurugram stood at 1.72 million sq ft in the overall gross office uptake.
According to reports, National Capital Region (NCR) is undergoing with over 44 million sq ft of new office supply, which is at various stages of construction. About 50% of this supply will come in Noida, the 40% remaining will be distributed among Gurugram, and 8% in New Delhi.
There were less launching of projects in 2018 and the developers have deferred the completion of projects under construction due to high vacancy rates.
The gross absorption of NCR in Q1, 2018 was the following:
- Noida recorded about 1.01 million sq ft
- Gurugram at 1.72 million sq ft
- Delhi recorded 0.26 million sq ft
As Noida recorded the highest gross absorption of about 1.01 million sq ft Noida will remain high at above 25% over 2018-2020. Among the total absorption, the technology sector accounted for 25% and the financial sector which accounted for 20%.
Moreover, vacancy levels in Gurugram are likely to remain high above 25% with significant supply pipeline in peripheral micro-markets over 2018-2020.
The capital value will go up in 2018-2020 as well as the premium locations will also increase by 4-5%.