REAL ESTATE SCENARIO

In CBD, the rental values witnessed a sharp upward trend due to the lack of supply, continuing corporate demand and the Successful operations of the metro rail project. With no new major supply expected to remain buoyant in the short to medium term.
Capital values have also moved up sharply due to restricted supply. Some of the notable transactions include space take-up by BPTP, TDI, Cisco Systems and Marubani.
  

Nehru Place , Jasola and Saket remained the preferred destinations in the secondary micro market. With no new supply expected in the CBD, these locations with upcoming Grade A developments continued to attract corporate interest. Rental and capital values are expected to remain stable or even appreciate marginally in the short term.
Some of the notable transactions include space take-up by ONGC Mittal, American Airlines and Reliance Infocomm.
   

Both Gurgoan and Noida markets remain buoyant due to increased demand from the IT/ITes players. Capital and rental Values, as in other parts of New Delhi , continued their movement northward, with no significant correction expected in the short term. The increase in demand for large format offices and campus style developments have initiated a race for land along NH 8 for It Parks and SEzs. Significant over the next 3 quarters. However the existing space crunch specially in Gurgoan, has led to most of the expected supply, being pre-committed. Some of the notable transactions in Gurgaon include space take-up by PWC, XL Insurance, E&Y, Bharti Televentures, Satyam, Dell, Microsoft, and Ericsson.
Noida continued to attract the price-sensitive IT market and consequently has engaged the interests of large, national level Players such as DLF and Unitech, that have launched several Grade A IT park projects here.
  

The continuing improvement of infrastructure in the National Capital Region, augers well for the real estate industry. The ever expanding Metro operations, nearing of completion of the NH-8 expressway, construction of new flyovers across The city, all these initiatives would help bring this large region closer like never before, thus enhancing the ease of doing business and increasing the overall competitiveness and attractiveness as a corporate destination.
  

The CBD market remained sluggish this quarter largely due to the disruption to traffic caused by the Metro construction work. There have been very few significant transactions in the area and vacancy levels remain high, with an increasing
downward pressure being exerted on the values. Among the few notable transactions in the last quarter, Indraprastha Gas and ING Vysya life Insurance, both leased
approximately 14,500 sq. ft. at Gopla Das Bhawan. Other major leasing transactions included Kotak taking-up approximately 11,000 sq. ft. at Ambadeep and Qualcomm securing approximately 4,300 sq. ft. at DlF Centre.

In absence of any major demand drivers, transactional activity is expected to remain subdued. While the market is not expected to witness any major correction in values, a downward pressure is expected to be maintained in the short term.
 

South Delhi witnessed a sluggish quarter for the office space market, while Okhla and Mohan Cooperative areas continued to generate interest from the BPO sector due to their attractive pricing. However, there has been no significant transaction in these areas this last quarter.
 

Despite the traffic bottlenecks during peak hours on the two main access roads to Gurgaon and the construction work of the Expressway on the NH 8, Gurgaon continued to be the preferred destination for corporates. There has also been significant movement within Gurgaon itself with quite a few companies either taking up additional space or relocating from one building to another, as a part of their expansion cum consolidation drive. Hectic construction activity ensures continual supply of new facilities with large floor plates and state-of-art facilities.

Among the significant transactions, Fidelity signed up an additional around 32,000 sq. ft. at Unitech Business Park, UOP secured approximately 20,000 sq. ft. at Unitech Business Park, Jhon liang leased approximate 9,000 sq. ft. at Vatika Triangle, while Inforte, Mastercard and Aviva leased approximate 6,000 sq ft each at Orchid Square, Global Business Park and JMD Regent Square respectively.

Noida continued the good run with the industrial sectors of 58, 59 & 60 attracting quite a few entrants. Among the notable transactions; Birlasoft leased approximately 80,000 sq. ft., CSC acquired an additional around 60,000 sq. ft., Patni Computers leased approximately 30,000 sq. ft., Relysys acquired around 10,000 sq. ft. and Swiss Management Group leased around 8,000 sq.ft..