Gurgaon Properties Pick Up in Commercial Segment

By: George Gonigal

Good news for the property markets of Gurgaon. After bearing the brunt of falling demand and low absorption levels at least for the past 12 months, a healthy spurt has been witnessed in the segment of commercial properties, especially Grade A office space, in the city.

According to recent studies by real estate advisory DTZ, 2.50 million sq. ft of Grade A office space was absorbed in the third quarter of the current year, against 0.8 and 1.50 million sq. ft of office space in the second and first quarter respectively.

If the industry reports are to be further believed, rental values for commercial properties in the Peripheral Business Districts (PBD) of Gurgaon have gone up by 15 per cent in the past three months. Also, if we take account of the period between January and September 2007, the same comes to as much as 45 per cent.

Interestingly though the supply side still outstripped the demand by more than 100 per cent in the quarter between July and September, industry veterans say. According to market players, a number of commercial property projects got completed in this period and this way there is a phenomenal amount of new commercial space floating in the Gurgaon property markets. Take for instance, DLF Building No. 6, which single-handedly added 5.50 lakh sq. ft of office space to the Gurgaon Real Estate.

Real estate developers, at the other end, express content over the rise in demand but find themselves caught in a tricky situation where the supply of real estate is no where in proportionate to the actual demand scenario. It's not realistic...said a prominent real estate developer of Gurgaon, with request of not publishing his name.

Meanwhile, the market sources informed that the biggest deal in the commercial property segment of Gurgaon in the past three months took place in the form of Cairn Energy leasing 1.70 lakh sq. ft of office space at Paras Twin Tower.

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