Delhi sees 1.41 million sq ft of new office space supply in Q2

Over half of the new supply is in Gurgaon.

Delhi welcomed 1.41 million sq ft of new office supply in 2Q22. According to JLL, around 51% of the supply was completed in Gurgaon, 42% in Noida and 7% in Delhi SBD. Vacancy declined by 20 bps q-o-q to reach 27.8%.

By 2026, a significant amount of new supply is expected to be added in Delhi NCR, with Gurgaon accounting for a 57% share and Noida accounting for 38%.

Here’s more from JLL:

In 2Q22, Delhi NCR recorded a net absorption of 1.32 million sq ft, a marginal decline of 1% q-o-q. The gross leasing volume was much higher at 4.3 million sq ft, driven by churn deals and pre-commitments. Gurgaon led with a 54% share of quarterly net absorption, Noida accounted for 43% while Delhi SBD had a share of 3%.

Large-size deals (above 50,000 sq ft) constituted 49% of the quarterly gross leasing volume. The flex segment witnessed healthy leasing activity and its share in gross leasing increased from 26% in 1Q22 to 29% in 2Q22. The IT sector continued to be the key driver of gross leasing activity with a share of 25%.

Rents rise slightly across submarkets except for the CBD

Rents recorded a slight rise across submarkets, except for the CBD which remained stable. In the medium term, rents are expected to increase due to elevated demand from occupiers and low vacancy in office buildings of quality.

Demand for high-quality office buildings is expected to climb, with occupiers taking advantage of pre-leasing superior-grade projects by established developers that are upcoming.

Outlook: Higher leasing activity expected in the office market

Improving occupier sentiment and flight to quality will lead to higher leasing momentum in 2H22. The office market is expected to remain on the path of recovery, while net absorption is expected to return to pre-pandemic levels.

Around 45.51 million sq ft of supply is expected across Delhi NCR by 2026. Considering the supply, pre-commitments and the expected demand, net absorption of around 35 million sq ft is expected in the same period.

Note: Delhi Office refers to Delhi NCR's overall Grade A office market.

Follow the link s for more news on

JLL

delhi office rents

new delhi office leasing volume

Also Read

Current trends in Kuala Lumpur’s office market revealed

Bangkok office supply to hit 1.8m sqm by year-end

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit