By Mr.
Santhosh Kumar, JLL India
WRAP-UP
FOR 2012
Delhi - NCR (National
Capital Region) Commercial Real Estate - 2012
Best
Performing Areas..!
In 2012, Sohna Road
in Gurgaon saw very high levels of office space leasing & absorption due to
its affordability.
Several comparable
options in terms of quality were at significantly higher price points (with
rentals above Rs. 70 per square foot). The good quality of office
property supply & attractive rentals in the range of Rs. 30 to 40 per
square foot worked in Sohna Road’s favour.
Its appeal as a
business destination was magnified by the presence of good retail developments
in the vicinity & the availability of comparatively affordable,
ready-to-move residential options.
DLF Cyber City
withstood all challenges & continued to build on its reputation as the most
sought-after location for leading businesses in the NCR- belt.
The location’s USP of
being a neighbourhood populated by leading MNCs (Multi Nation Companies) was
sufficient incentive for many leading international corporates to choose this
location for their office space requirements.
The available options
came at significantly high price points (above Rs. 70 per square foot).
However, DLF Cyber City rode tall on the prospects of the impending
infrastructure upgrade in the form of the soon-to-commence rapid metro services
and road improvements.
In Delhi, Saket was
the unchallenged hotspot for office space leasing in 2012. This area saw a
healthy supply & absorption of office real estate, despite significantly
higher rentals. The factors that worked for Saket were:
** Its existing status as one of the most
happening & developed locations in Delhi
** Excellent
connectivity to the rest of Delhi & Gurgaon / Noida
** High quality of
office property supply
Worst Performing
Areas..!
In terms of office
space absorption, the following locations performed rather badly in 2012:
** NH 8 (beyond Rajiv Chowk) - Though
office space supply & affordability were not issues, supply there failed to
be absorbed because of poor connectivity. The inferior road infrastructure
caused alarmingly high levels of traffic congestion, compounded by frequent
waterlogging.
** Golf Course
Extension -
This area had limited supply which nevertheless saw low levels of absorption
because of this region’s lack of ready-to-move in residential options. Most of
the residential supply in this area was under construction in 2012, resulting
in negative decision by corporates in terms of leasing office space there.
** Greater Noida and
Sector 62
- These regions in Noida definitely took a back seat in terms of office space
absorption in 2012. Sector 62 suffered because of its distance from CBD.
Although it had ready supply & rentals were affordable and promising when
compared to other options, the difference in price points was not cause the
supply there to overrule the options available in other prime locations of
Noida (like Noida Expressway and CBD, which offered multiple advantages in
terms of good quality supply and better locations) even though the price points
in these areas were higher.
Greater Noida was
also unable to perform because of the existing supply of quality office spaces
along Noida Expressway. Most of the absorption was more or less along the
Expressway till Sector 142.
By Mr. Santhosh Kumar
is CEO – Operations at Jones Lang LaSalle India
Santhosh Kumar, CEO –
Operations, JLL India
+91 124 460 5000,
santhosh.kumar@ap.jll.com
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