Office Real Estate in Gurgaon-an Update

By: Kalpita Saxena

Ever wondered what actually is this real estate boom all about? Just check and you will get the feel of it. Imagine. The vacancy rates in the commercial office space segment are as low as 1.74 per cent in this flourishing suburb of Delhi-National Capital Region (NCR) today.

And it is never the case that Gurgaon is not able to add fresh capacities in the segment. Three huge commercial projects were accomplished in the first quarter of year 2007, bringing about 1-million square feet of quality office and retail space to the city. The biggest one among these is Vipul Tech Square with built-up area of 4-lakh sq. ft, followed by Unitech Cyber Park and Ambience Corporate Park, building commercial space of 2.75 lakh and 2.24 lakh sq. ft, respectively.

Growth Drivers
Demand in segment of Gurgaon is primarily driven by companies in IT enabled Services (ITeS) and Business Process Outsourcing (BPO) companies that are enjoying amazing success here in the city.
In Gurgaon, the operating costs are comparatively lower than other business hubs of Delhi, Mumbai and Bangalore and this reason is enough to drive corporate behemoths to tread into this city, located at a throwaway distance of 30-kms from Delhi.
Moreover, the state of infrastructure in Gurgaon is quite good except shortage of power that results in 3-4 hour of power cut during the day, which is not really a deterrent since most of the commercial buildings have arrangements to deal with the matter.
Meanwhile, a host of companies has set themselves up to pursue ambitious growth plans in Gurgaon and thus quest for more and more office space is on.

Rental Scenario
As far as renting an office in Gurgaon is concerned, the scene is visibly dominated by services sector. In fact, the segment is broadly divided into two categories-IT related and non IT.
The average for IT and ITeS companies come close to Rs 60-80 psft while the same hovers between Rs 110 and Rs 130 psft for the non IT and ITeS.

Major Deals
Recently, IBM leased 1.70 lakh sq. ft of office space at the newly-constructed Unitech Cyber Park that makes the largest lease transaction in the city, so far this year.
Besides, GSK leasing hired some 8,000 sq. ft office on rent in Gurgaon at Vatike Towers. Finally with the ongoing trends and emerging scenario, commercial rentals are likely to remain stable and upwardly mobile in the prime areas for the next 6-months and no signs of meltdown are in the picture.

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