Delhi net office absorption to increase by 6% to 7.5m sq ft by year-end

Net absorption was at 1.9m sq ft in Q3 alone.

According to a JLL report, premium office locations and high-quality buildings supported by institutional owners are anticipated to see increased leasing activity and rents.

Net absorption in Delhi, said the report, is likely to touch 7.5-7.6 million sq ft by end-2024, higher by 6% y-o-y.

Here’s more from JLL:

The convergence of positive market factors, anticipated quality new office spaces and high tenant occupancy will boost investor interest in Delhi NCR’s office market.

Net absorption in Q3 2024 reached 1.92 million sq ft, up 13% y-o-y

While net absorption fell by 21% q-o-q, it was up by 13% compared to the same period last year. Gurgaon emerged as the leader in Delhi NCR’s quarterly net absorption with 63%, while Noida recorded 33%.

Gross leasing activity during the quarter was recorded at 4.59 million sq ft. For the January to September 2024 period, a robust net absorption of 6.6 million sq ft was recorded, 91% of 2023’s annual net absorption.

New supply totalling 1.09 million sq ft records during the quarter

Completions of 1.09 million sq ft were recorded during the quarter in Noida and Gurgaon submarkets, taking the total Grade A stock to 153 million sq ft. Two projects were completed in Gurgaon and one in Noida.

Supply of 6.98 million sq ft is expected to come on stream by end-2024, of which 68% is projected to be in Gurgaon, followed by around 28% in Noida and 4% in SBD. Major developers and institutional owners are anticipated to lead supply additions in the future.

Rents across all submarkets contribute to an overall q-o-q increase of 1.4%

Grade A office spaces in Gurgaon, Noida and Delhi are experiencing rising rents, with developers increasing prices for upcoming phases of existing projects. Rent growth is projected to maintain the positive momentum in both the short and medium term.

The upcoming surge of top-notch Grade A office space is expected to drive significant leasing activity and rents in the next year. Diverse occupiers, including flex space operators, are driving increased demand in key office markets.