Gurgaon Takes the Lead as Companies Lease Larger Office Spaces in NCR
While there is an emerging market for large offices once again, there is a shift where businesses seeking large office space are abandoning looking at other eastern regions and focusing on Gurgaon area only. Several factors related to the city, such as location advantages, modern facilities and availability of available manpower, to name a few, are attributed to this growth.
Gurgaon is experiencing a growing demand for office space due to the impact of the pandemic on how workplaces are structured. With the advent of hybrid work models, many companies are opting for more expansive office spaces to facilitate flexible working styles and encourage teamwork among employees, which has been in great demand of late. The Commercial Property in Noida as well as Gurgaon is favorably positioned for this demand due to its rich concentration of IT parks and business complexes.
The 61% of deals for office units measuring over 50,000 square feet during the first half of 2024 were recorded in the National Capital Region, which is up 32% YoY as per the global property company Knight Frank India.
Despite the enormity of the number discussed, there was still an increase from 2.61 million square feet transacted in H1 2023. This escalation of the commercial property demand of Gurgaon, basically by businesses concentrating on India and serviced offices, was assisted by the rising optimism in the growing economy.
Of the 2.22 million square feet of office space in the region classified as small, covering less than 50,000 square feet represented 39% of all the deals made.
The performance of the NCR office space saw a better performance, growing by 12% when compared to the previous period from H1 2023 to reach a gross leased space of 5.7 million square feet in H1 2024. Where 2.9 million square feet of new office space construction was completed. Gurugram registered the utmost percentage share of 56 in leasing of the area. However, there was a particularly substantial concentration in areas such as DLF Cyber City, Golf Course Extension Road, NH-48, and Udyog Vihar.
Similar also, in Noida’s sectors 135, 142, and 18, lying adjoining the Noida Greater Noida Expressway, there was also remarkable interest from occupiers.
In Gurgaon, the share of office spaces leased to Indian companies gathered pace, up from 49% in H12023 to 55% in H12024, meaning that the domestic companies are growing in importance in the economic recovery.
The lease market was also supported by flexible office spaces with a share of 26%, followed by the Global Capability Centres (GCC) at 11% and third-party IT service providers at 9%.
As has been suggested, the National Capital Region has emerged as the top region for office space among the already ranked ‘top eight office markets’ of India, as per Anand Patil, who is the National Director of Knight Frank India. This increase of large office sizes beyond the $50,000 range was mainly as a result of returning flex spaces and India-dominated corporates. This upsurge was on account of the optimism regarding the growing economy. Prospects of NCR Office Spaces in Noida look up as more users from Indian corporates are getting added.
There has been a quick uptake of a lot of huge office space in Gurgaon from the disparate software companies, such as multinational firms or software overlords. Gurgaon has all the modern structures and unmatched infrastructure, and the rental charges are also moderate compared to other cities, making it attractive to both start-ups and existing companies. Recently, numerous reputed companies have signed long leases, demonstrating their confidence in the sustainability and future growth of the local economy.
Also, rail connections, which are close to Delhi, and other well-built pathways are added reasons that make Gurgaon attractive. Property in Gurgaon is also very well connected because of the Delhi Metro, the fast highways, and the proposed construction of an airport, thus making it a good option for companies wishing to recruit well.
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This encourages a clearer mix of industries with the tech innovations and lifestyle supporting such industries for many companies establishing or growing their business in the NCR region. There is a strong desire from the city authorities to invest in infrastructure, which will guarantee that businesses and offices will always be cut for the commercial real estate market.
As international firms start to appreciate the merits of long office lease periods in Gurgaon, it is going to gain to maintain the status of a business center in the region, and economic mushrooming will be on in terms of NCR.
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