1/5th of India’s developed office stock in Gurgaon, says study

GURUGRAM: The real estate business in the residential housing segment may be struggling for the past five years, but the market for commercial space, especially in the office segment, is witnessing upward growth, according to a study by CBRE, the Los Angeles-based commercial real estate services and investment firm.
The study says Gurugram’s office space market has grown from a meagre 6 million sq ft in 2005 to about 60 million sq ft by end-2018. The office space stock in the entire Delhi-NCR has also grown 10 times, from less than 10 million sq ft in 2005, to close to 100 million sq ft by end-2018. Sharing figures of the office space market, Anshuman Magazine, the CBRE chairman and CEO of India, South-east Asia, Middle East and Africa, said Gurugram — one of the most preferred locations for global corporates entering India — accounts for almost 18% of India’s developed office stock.



The study shows corporate occupiers, who look to expand or consolidate their operations, are from sectors as diverse as ITES (information technology enabled services), banking/financial services, telecommunications, pharmaceuticals, consulting and manufacturing. Magazine, who was in Gurugram to launch CBRE’s new headquarters, said the city’s share in India’s overall supply and demand dynamics continues to witness an upward growth as these sectors have been driving transaction activity in the city.

On what to expect in the office market, he said NCR’s office market is expected to expand to almost 120 million sq ft by 2020. Interestingly, NCR continues to be a preferred location for corporates, nearly two decades since it came into existence as an investment-grade office market.