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By the second quarter of 2009, 4 million sq ft each of non-SEZ and SEZ
space is likely to be added to the stock in the NCR, says a new report
The NCR real estate office market is fast changing from a sellers'
market to a buyers' market. By second quarter of 2009, 4 million sq ft
each of non-SEZ and SEZ space is likely to be added to the stock in
the NCR, says Quarter 4, 2008 India Office Market View – a CB Richard
Ellis report on the commercial office market space in India.
Prospective tenants are also likely to postpone their requirement in
anticipation of further correction in rentals, which does not augur
well for the overall health of the general market. Rental correction
is expected to continue for at least next two quarters as well.
Commenting on the report, Anshuman Magazine, Chairman & Managing
Director, CB Richard Ellis, South Asia said, "The real estate sector
in India has mirrored the global economic conditions that are unfolding. Unlike the trends noticed in the past few years, fresh
commitments and releasing of under-construction developments, have
seen a drop. The next few months are likely to be a time of subdued
demand in the short term. However the Indian Government's economic
stimulus package along with future American economic announcements, to
revive the economy, is expected to eventually improve activity levels
in the market."
CBD
The impact of the global slowdown along with subdued sentiment of
investors continued to impact the demand for office space across the
business districts of NCR. The Central Business District (CBD)
witnessed a reversal of trend in 2008 as compared to 2007 when leasing
activity was in the growth phase. No major transaction was concluded
in this micro market this year apart from a few smaller space
take-ups. The upcoming Civic Centre project and redevelopment of
railway land is expected to add new supply to the CBD after a fairly
long period of time, the report said.
The Secondary Business District (SBD) of Nehru Place maintained status
quo with no new supply and no leading of Grade A space. A large space
in Saket which was initially planned for a single user has now been
offered for lease. Bulk of leasing activity in Delhi has been
concentrated in Jasola District Centre that has quality supply and
comparatively lower rentals.
The Gurgaon market has also been slow on leasing both for IT as well
as commercial office space. Noida like previous quarters has abundant
competitively priced IT supply but caters mostly to mid and low level
IT companies and has witnessed slow leasing activity leading to a
vacancy level of around 20 per cent.
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