The Knight Frank India, latest research on the NCR Office market reports Gurgaon & Noida as the prominent cities, accounting for 89% of the office space transacted in NCR in Q4 FY13. Corporate companies such as American Express, Fiserv, Jacob’s, HCL, Micromax and Google were the top space occupiers, garnering approximately 75% of the office absorption. Gurgaon remains the most preferred micro-market for office absorption, contributing nearly 60% of the quarterly absorption while Noida is expected to witness an incremental office stock of 11m sq ft in the next five years.
According to Knight Frank Research, availability of contiguous land parcels, proximity to the international airport, quality commercial properties and access to the talent pool has attracted many corporate to Gurgaon. Other than the already established office markets of DLF Cyber City and Udyog Vihar, some of the new office markets like Sohna Road and Southern Peripheral Road have also emerged as important commercial destinations.
Noida has emerged as an affordable alternative office destination compared to both Delhi and Gurgaon. It caters to IT/ITeS companies operating from independent or built-to-suit buildings as well as IT SEZ developments. Relatively low rentals and larger floor plates in contrast to the competing market of Delhi will boost office demand in the Noida market. Additionally, the advantage of it being in proximity to major residential markets will continue to attract occupier’s interest especially from the IT/ITeS sector.