When it comes to soaring commercial realty prices, Delhi-NCR region may soon beat other destinations in India. At least three reports on the sector point to the national capital gaining compared to many other destinations in the country. According to real estate consultant Cushman & Wakefield, New Delhi’s Connaught Place has emerged as the world’s fourth most expensive office location, gaining one position over last year.
The report ranks locations across 63 countries to compare the most expensive office destinations across the world. London’s West End emerged as the world’s most expensive office market, regaining its position from Hong Kong’s Central Business District (CBD) after a gap of five years, while Rio de Janerio in Brazil captured the third position, according to the report, ‘Office Space across the World 2013’.
The rental values have registered a growth of approximately 25 per cent over the last year, to cost Rs 403 a square foot a month. Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield said that the new master plan for New Delhi by the Delhi Development Authority has not provisioned for any rapid growth of office space within the city, leaving very limited choice.
A DTZ report also indicates that Delhi is the most expensive market in the rankings, whilst Perth slides to number four. According to Knight Frank Research, NCR being the biggest office market of the country with nearly 88 million sq ft office space, witnessed a 39 per cent dip in third quarter of fiscal 2013, compared to the same quarter last year. Vacancy levels range between 20-25 per cent across various micro-markets in the NCR.
Most of the office supply has come up in the peripheral business districts of Gurgaon, Noida, Greater Noida and secondary business districts of Saket and Jasola. The Knight Frank report also says NCR is expected to witness new office space completions to the tune of 45 million sq ft in the next three years.
In the third quarter of fiscal 2013, about 94 per cent of the total office space transacted in the NCR was taken up in Gurgaon and Noida.