DELHI NCR OFFICE MARCH 2019

MARKETBEATS
2.8 msf 61.1% 8.6 msf
G R O S S L E A S IN G G U R U G R A M’ S S H A R E O F AVERAGE ANNUAL SUPPLY
(Q1 2019) L E A S IN G A C T IV IT Y ( Q 1 2 0 1 9 ) (2019 - 21)

HIGHLIGHTS MARKET INDICATORS OVERALL

12 month
Strong opening in 2019 for NCR office market Q1 2018 Q1 2019 Forecast

Delhi NCR office market opened to a strong leasing activity of 2.8 msf in the first quarter Overall Vacancy 26.5% 26.1%
of 2019, a y-o-y growth of 82%. A significant 38% of the gross leasing for Q1 2019 was Weighted Average Net
Asking Rental (INR/sf/month) 69.14 68.11
on account of transactions above 50,000 sf. Flexible workspace occupiers led the
YTD Net Absorption (sf) 784,900 830,900
demand for offices with a 24% share of leasing, with IT-BPM and manufacturing sectors
following with shares of 19% and 18%, respectively. Gurugram Others submarket GRADE A OVERALL RENT
contributed 42% to NCR leasing numbers, with the Golf Course Extension Road corridor & VACANCY RATE
drawing maximum attention from occupiers. With almost 1.7 msf being vacated by
occupiers as part of their relocation / consolidation plans, net absorption at 0.8 msf for 80 40%
70
the quarter, recorded a drop of 35% q-o-q. 60
30%

Tw o-fold increase in new supply 50 20%

40
The city recorded significant supply additions totaling to 3.7 msf in Q1 across Noida & 10%
30
Gurugram, with around 25% of this space being pre-committed by large IT-BPM, e- 20 0%
commerce and flex space operators. SEZ spaces constituted almost 40% of the new 2012 2013 2014 2015 2016 2017 2018 Q1
2019
completions in Q1 2019, largely in Noida, with developers expediting projects to meet Net Asking Rental (INR/sf/month) Vacancy Rate (%)
the SEZ sunset clause timelines. With net absorption moderated by occupier exits,
overall vacancy rose to 26.1%, a q-o-q increase of 180 bps. Rents were largely stable GRADE A PRE COMMITMENT AND NET
ABSORPTION
across all sub-markets.
A Cushman & W akefield 8,000
Research Publication Robust supply pipeline in key markets
6,000
Average annual supply upto 2021 is around 8.6 msf, headlined by both core office
4,000
DATA markets as well as the growth corridors. Further new project announcements in core
INTO 2,000
office markets are also anticipated. While flex space operators shall continue to move
ACTION 0
forward with their expansion plans, IT-BPM and captive centres are also expected to 2012 2013 2014 2015 2016 2017 2018 Q1 2019
drive demand for large spaces in the market. Pre-commitment (000' sf) Net Absorption (000' sf)
www.cushmanwakefield.com
 DELHI NCR OFFICE
MARKETBEAT MARCH 2019
GRADE A WTD. AVG. RENT*
Rohan Sharma PLANNED & YTD
YTD NET
INVENTORY VACANCY YTD LEASING UNDER CONSTRUCTION
Director, Research SUBMARKET (SF) RATE ACTIVITY (SF) CONSTRUCTION^ COMPLETIONS
ABSORPTION
INR/SF/MO US$/SF/YR EUR/SF/YR
Tel: +91 124 4695555 (SF)
(SF) (SF)
Rohan.Sharma1@cushwake.com
Delhi CBD 1,343,700 14.5% 39,300 253,900 0 10,000 326.56 56.65 50.34
South-East Delhi 6,578,200 19.8% 117,800 0 0 57,100 124.06 21.52 19.13
Delhi International Airport 1,366,800 7.2% 0 0 0 55,000 225.00 39.03 34.69
Gurugram CBD 15,995,700 4.5% 546,400 3,534,300 0 (95,200) 123.90 21.50 19.10
Gurugram Others 54,172,300 34.1% 1,161,400 12,977,700 2,213,400 495,300 63.86 11.08 9.85
Noida 25,910,400 26.0% 931,600 9,090,100 1,523,600 353,800 57.03 9.89 8.79
TOTAL 105,367,100 26.1% 2,796,500 25,856,000 3,737,000 876,000 68.11 $11.82 €10.50

The report highlights Grade A details only. Certain indicators are historically corrected by addition / deletion of older / refurbished projects as per grade A classification and accounting for changes in built-up /
leasable area besides adjusting tenant leases to reflect accurate market conditions.
Net absorption refers to the incremental new space take-up; renewals not included in leasing activity statistics
*Weighted average asking rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
^Planned & Under Construction supply captured until 2021
IT-BPM – Information Technology – Business Process Management
Key to submarkets:
Delhi CBD – Connaught Place
South-East Delhi – Saket, Jasola, Nehru Place, Munirka, Okhla
Gurugram CBD – Cyber City, MG Road
Gurugram Others – rest of the city (excludes Manesar)
Noida – excludes Greater Noida
US$ 1 = INR 69.17; € 1 = INR 77.84
Numbers for the first quarter are based on market information collected until 10th March 2019

KEY LEASING TRANSACTIONS Q1 2019

PROPERTY SUBMARKET TENANT SF LEASE TYPE

DATA
INTO Maple Corporate Park Noida Smartworks 271,200 Expansion
ACTION
Assotech Business Cresterra Noida IndiaMART 150,000 Expansion

Landmark Cyber Park Gurugram Others Plus Offices 110,000 Expansion

A Cushman & W akefield Pioneer Urban Square Gurugram Others Garage Society 56,000 Expansion
Research Publication
Digital Greens Tower A Gurugram Others Innov8 35,000 Expansion

Cushman & Wakefield (NYSE: CWK) is a leading global real estate

services firm that delivers exceptional value for real estate occupiers
SIGNIFICANT PROJECTS PLANNED & UNDER CONSTRUCTION
and owners. Cushman & Wakefield is among the largest real estate
services firms with approximately 51,000 employees in 400 offices
and 70 countries. In 2018, the firm had revenue of $8.2 billion across
PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION DATE
core services of property, facilities and project management, leasing,
capital markets, valuation and other services. To learn more, visit Signature Tower III – B & C Gurugram Others 380,000 Q4 2019
www.cushmanwakefield.com or follow @CushWake on Twitter.
TRIL Commercial Centre Tower A Gurugram Others - 320,000 Q4 2019

www.cushmanwakefield.com Bharti Worldmark Gurugram Others 485,135 Q4 2019

DLF Cyber Park Gurugram CBD BACI, Gartner, Expedia 2,518,900 Q4 2019
Copyright © 2019 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.