Office Leasing Market in Gurgaon : Sub-Markets Explored
We're in July now and the office leasing market in Gurgaon doesn't seem to be revealing any clear trends with unpredictable demand across small to large size requirements.
In the last six months we've seen some acquisition spree as far as office plate sales go however sales have been few and far between. I thought I'd categorise and outline the various submarkets and how they've been doing over the last six months or so on a broad based perspective as we saw it (leasing market).
1) Cyber City – Perhaps the best performing sub-market in the city with highest (plus 90%) occupancy levels being recorded consistently over the last 6 months. We've had small size queries from 3000 sq. ft. or so come in and transaction wise the market reports suggest a couple of plus 10,000 sq. ft. transactions being closed in this sub-market. Rentals are currently at Rs. 120 per sq. ft.
2) M.G. Road – Not much traction here although business centres saw some demand here as did some spaces in office and commercial complexes. Rentals at Rs. 110 – 120 per sq. ft. on an average. Slight dip in rentals here over the last six months.
3) Golf Course Road – Major infrastructural changes have been underway here - rapid metro which started on April 1st of this year and the conversion of Golf Course Road to an expressway is almost complete with a couple of underpasses being open during this time. Rentals are currently at around Rs. 100 per sq. ft. (Furnished) bare shell perhaps at Rs.90 per sq. ft. closing. Business Centre queries are prevalent in this sub-market and we had queries for large plate office space during the last six months.
4) Sector 44 – Perhaps the most popular and economic – choice outside CyberCity by prospective occupiers though offices of 5000 sq. ft. and above only available here. We had large plate requirements from a client in this sub-market as well with access to metro being a key driver of demand side interest here. Rentals are quoted at Rs. 65 – 70 per sq. ft.
5) Udyog Vihar – Popular for IT/ITES companies with small to large sized space requirements, rentals here have stayed status quo at Rs. 55 per sq. ft.
6) Sohna Road – Very popular with small and medium sized firms, Sohna road is far from the city CBD most prospective tenants have rightly claimed. The smaller firms are perhaps most frequent visitors and occupants with rentals being quoted at Rs. 50 per sq. ft.
We see an improvement in demand side fillip for office leasing in the couple of months once GST is established a bit.
There's also rumours circulating of office property based REITS to be on the market soon which will help the segment. No dates in sight currently. Watch this space for more..
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