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Delhi & NCR Commercial Real Estate Booming

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Delhi & NCR Commercial Real Estate Booming

Last updated: March 30 2008
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  • Delhi & NCR Commercial Real Estate Booming

    Delhi National Capital Region in India has seen commercial Grade A space absorbtion increase by 42% in the first seven months of the year to 5.1 million sq ft, according to a study by DTZ Debenham Tie Leung.

    “The office market has primarily been driven by the IT/ITES sector which accounts for about 75% of the total office absorption in NCR,” said Ankur Srivastava, Managing Director, DTZ Debenham Tie Leung India.

    Numerous factors have contributed to this increasing commercial demand in the NCR region. NCR has edged over most Indian cities in the demand for commercial property due to its improved connectivity, better infrastructure and availability of skilled human resource. Because of the Commonwealth Games, transportation, hotel accommodation, security and all other supporting infrastructure are getting a boost while the market for information technology (IT) is the highest in the city of Delhi.
    Last edited by hament; October 31 2006, 02:48 PM.
  • #2

    #2

    Re : Delhi & NCR Commercial Real Estate Booming

    Hament, I think Indian Real estate market is booming because of positive growth of Indian economy and investing money of foreign builder in Indian real estate market. I read some where that in the year 2006 the Government has allowed100% foreign direct investment that why the foreign investors attracted toward Delhi and NCR (Noida and Gurgaon) and other major cities in India for their business
    I think that may be the cause of real estate booming in Delhi & NCR
    Last edited by nakul; October 31 2006, 03:22 PM.

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    • #3

      #3

      Re : Delhi & NCR Commercial Real Estate Booming

      Thanks you dear for the valuable information that you have povided. but i am little bit confused
      are residential areas also going to see such boost aswell in NCR? I have been planning to buy a house in NCR for the last few months and I am a bit confused now if this is the right time or shall i wait till next year?

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      • #4

        #4

        Re : Delhi & NCR Commercial Real Estate Booming

        But will the boom sustain.....

        But will the boom sustain.....

        The National Capital region (NCR) around Delhi is gradually becoming synonymous to the real estate boom in India.

        But what about the sealing drives and the fictitious allotment of land and property that has led to the sealings.....Are there enough credibility behind the boom?

        Or we are setting the stage to see more sealings and bulldozers bring the 'present boom' down.

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        • #5

          #5

          Re : Delhi & NCR Commercial Real Estate Booming

          Srikant Said -
          I have been planning to buy a house in NCR for the last few months and I am a bit confused now if this is the right time or shall i wait till next year?
          Well Srikant you dont have to be confused, in real estate there is one simple rule dont wait for property prices to come down, in real estate dont expect that price of residential property whether its Apartment/ flat or Independent house would go down, the price could go down a little for time but its so less that it hardly matter.

          The amount of appreciation you would get on property would be much higher than the amount of money you would wait to come down by. If you have a good source of stable income i would suggest to rather wait for interest rate on home loans to come down. but dont wait much in speculations and start with 1 bedroom set flat or so , so that you can get apreciation as well rental income to buy a bigger house in comin year, but dont wait !!

          All the Best

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          • #6

            #6

            Re : Delhi & NCR Commercial Real Estate Booming

            Delhi is burning……


            Do you think this kind of situation in Delhi help to increase real estate market?

            The last day of three-day long strike by traders against sealing of shops in residential areas threw normal life totally out of gear here with traffic snarls, damage to public property and transport reported from different parts of Delhi
            Attached Files
            Last edited by dev; November 2 2006, 10:21 AM.

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            • #7

              #7

              Re : Delhi & NCR Commercial Real Estate Booming

              No connection to real estate

              Its really bad....

              But I'm optimistic and believe every cloud has a silver lining.
              I hope people and the authorities take lessons from it.
              And its effect on real estate......

              I don't think there is any point in connecting 'this issue' to Delhi real estate.
              Of course I would expect buyers 'to look before they leap'

              And for violence as a solution to a problem.....don't think so.

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              • #8

                #8

                Re : Delhi & NCR Commercial Real Estate Booming

                sealing should have no impact on real estate..it is a different scenario all together..however, there is no denying the fact that it is a serious issue and needs quick and firm action to protect the interests of thousands affected due to the drive..

                some solution is expected in coming days as the government would not want to make it a black spot on their regime..also the vote bank is the prime factor..this time if politics can do some good for the people then it is better..

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                • #9

                  #9

                  Re : Delhi & NCR Commercial Real Estate Booming

                  Commercial space prices shoot up with sealing drive

                  Aadesh Wrote:
                  I don't think there is any point in connecting 'this issue' to Delhi real estate.
                  Anish Wrote:
                  sealing should have no impact on real estate..it is a different scenario all together..
                  I agree with both of you... Why....I think following news say much more......
                  Property prices of legal commercial space in south and east Delhi have skyrocketed in the past one month - a spin-off of the sealing of unauthorised commercial properties in the capital.

                  The sharp increase in prices - by 70-100 percent - was witnessed with the ousted businessmen now looking for space in authorised shopping areas as well as malls.

                  'There has been an increase of 70-100 percent in property prices both for rent and lease. This is too steep a rise and not many people will be able to afford it,' said Atma Prakash, a property consultant who provides financial assistance to buyers.

                  According to Prakash, the property prices in malls have peaked. 'The middle class and lower middle class businessmen will be the biggest losers with the closure of their shops, as they will not be able to afford the steep prices of malls or the bigger markets,' he said.

                  The Municipal Corporation of Delhi (MCD), as per a Supreme Court order, has started sealing over 44,000 commercial properties operating from residential areas in violation of the Delhi Master Plan. The retailers and fashion designers whose properties were hit have started shifting out of their existing business locations.

                  'We are paying three times the price for a suitable place in a mall. I had to vacate my earlier shop because of the demolitions,' said a leading fashion designer on condition of anonymity. He said that earlier he was paying around Rs.60,000 a month as rent for his showroom in southwest Delhi, but now he has to shell out around Rs.200,000 a month.

                  'The prices have shot up because there are not many good places where designers can start a showroom. So we are being charged a hefty price for the space,' he said.

                  'We are charging Rs.150 per square foot area for rent and Rs.500,000 per square foot in case of lease,' said a senior manager of East Delhi Mall.

                  Taking note of the increasing prices, property dealers said the sealing operations would suffocate the small traders and put them out of business.

                  'Earlier, we were charging around Rs.120 per square foot area, but now it is fluctuating between Rs.250-300. We believe that with the sealing drive picking up and more businesses getting closed, property prices will shoot up further,' said the manager of a leading shopping mall who did not want to be named.

                  He added that the sealing drive had forced businessmen to shift to areas in the satellite cities of Noida, Faridabad and Ghaziabad, where the property prices are lower.

                  --Indiaenews.com
                  Last edited by vimal; November 10 2006, 10:55 AM.

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                  • #10

                    #10

                    Re : Delhi & NCR Commercial Real Estate Booming

                    Hi Friends,
                    I'd like to share with you the this interesting piece of news which might in some way influence your investment decisions.

                    The real estate boom in commercial sector has further picked up in the National Capital Region following the government’s drive to seal the unauthorised and illegal premises. In the first nine months up to September 2006, according to the latest report of global consultancy firm DTZ Debenham Tie Leung, Delhi witnessed an overall absorption of 6.03 million sq ft of commercial area as compared to the 3.5 million sq ft absorbed during entire the 2005.

                    Consultants feel that the strong demand for the commercial space would also drive the demand for the residential space in the region. A senior consultant said that though a substantial portion of the demand came to meet the requirements of those whose premises have been sealed in Delhi, a huge amount of office space was taken by new companies and by the existing companies which expanded their operations.

                    According to the report, companies like Tech Mahindra, EXL Services, Energizer, Accenture and Genpact took huge office space in the region. These companies would employ fresh people and so the demand for the residential space would be created.

                    The report said that the office market absorption in the country is mainly driven by Information Technology (IT) and Information Technology Enabled Services (ITES) sectors, which account for about 90% of the total absorption. The second biggest sector which created demand for the office space was banking and financial institutions.

                    However, a senior consultant said that because of the ongoing sealing drive in the last two months, vacancies in Delhi had further gone down. Interestingly, Noida overtook Gurgaon in office space absorption in the third quarter. The report said Noida accounted for 48% of the total absorption in the National Capital Region (NCR).

                    - TOI,Delhi

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