Tech companies absorbed almost 60% of the fresh office lease in Noida. The office-absorption report by the real estate researcher further stated that a total of 7, 06,063 square metres of office space was absorbed in Noida, Gurgaon and Delhi in 2016.
Noida city has alone soaked up 36% or 2, 51,770 sqm of the office space. Gurgaon, leading the show, absorbed 51% of the office lease while Delhi recorded only 13% space absorption.
“In Noida, the technology sector, with 60% share, remained the key driving force in office space rentals. In Gurgaon, though the tech firms absorbed the maximum 32% of office space, the sector’s volume share in this regard reduced significantly from last year’s 64%,”. About 2.8 million sq ft (or 2, 60,220 sqm) of new space will be added to the total office stock in NCR in 2017.
The demand for new office space will be met by a slew of commercial constructions nearing completion in Noida and Greater Noida in 2017. However, as compared to tech-driven institutional rentals, commercial and industrial sectors have seen a plunge in rental values by 5%, the research report revealed.
Property owners have tried to retain existing occupiers with several projects nearing completion, promising high supply over the next three quarters.