M A R K E T B E AT

DELHI NCR
Office Q2 2024

Sustained momentum in office leasing driven by fresh lease; IT-BPM sector takes the lead
NCR witnessed a gross leasing volume (GLV) of 3.01 msf in the second, similar to the volumes recorded in last quarter, although a 16% dip from
activity witnessed in same period last year. Bulk of the deals recorded comprised of fresh space take-up as it accounted for 77% share, and pre-
commitments continued to remain high at 23% as seen in the previous year. IT-BPM led the quarterly demand with 31% share, followed by
3.01 msf GROSS LEASING (Q2 2024) Professional Services with 20% share. The first half of the year witnessed close to 5.93 msf of total GLV, 8% dip in activity seen in same period in last
year.
In terms of net absorption NCR recorded 1.45 msf during Q2-24 similar to the activity witnessed in previous quarter and 9.5% increase from Q2-23. The
0.31 msf NEW COMPLETIONS (Q2 2024) city recorded 2.91 msf of net absorption in H1-24, similar to activity witnessed in the same period last year.
At a sub-market level, Gurugram continued to lead demand within NCR, securing a 61% share in demand mostly in prime sub-markets such as Golf
Course Road, Golf Course Extension Road and Sohna Road, cumulatively representing 40% of overall GLV of the city. Noida contributed to the
remaining demand, with a 23% share primarily in Sector 62, followed by the Noida Expressway.
17.14 msf UPCOMING SUPPLY
(Q3 2024 – 2026)
Vacancy dips with steady leasing and limited quarterly supply
Delhi NCR witnessed close to 0.31 msf of supply addition during the quarter, slower than last quarter which had record quarterly supply numbers. Given
the limited supply coupled with steady fresh leasing activity, the city level vacancy witnessed an 80-bps dip bringing it down to 24%. Close to 1.73 msf
MARKET INDICATORS OVERALL of supply is expected in next six months, largely concentrated in Noida Expressway, which is expected to benefit from accessibility to new Noida
Q2 2024 International Airport (Phase I operations expected in H1 2025). Close to 17.14 msf of supply is expected to enter the market during Q3-2024 to 2026.

12 month Rentals continues to rise

Q2 2023 Q2 2024
Forecast
Delhi NCR saw rents increase by almost 2% q-o-q and a notable annual rental growth of 4% on average. Growth in rentals may be attributed to healthy
Overall leasing activity during the quarter. The rental rates are expected to remain range-bound in the coming quarters of 2024, as the city anticipates a heavy
24.55% 24.00% influx of supply alongside already elevated vacancy rates in certain submarkets.
Vacancy
Weighted Average
Net Asking Rents 63.6 66.3
(INR/sf/month)

YTD Net 2,567,434 2,910,683 NET ABSORPTION & NEW SUPPLY OVERALL VACANCY & WEIGHTED AVERAGE ASKING RENT
Absorption (sf)
70 30%
14
12 60 25%
10 50 20%
8 40
15%
6 30
20 10%
4
2 10 5%
0 0 0%

2024F
Q1 2019
Q1 2018
Q2 2018
Q3 2018
Q4 2018

Q2 2019
Q3 2019
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
2018 2019 2020 2021 2022 2023 Q1 Q2 2024F
2024 2024
NET ABSORPTION (MSF) NEW SUPPLY (MSF) WEIGHTED AVERAGE RENTS (INR/SF/MONTH) OVERALL VACANCY(%)
M A R K E T B E AT

DELHI NCR
Office Q2 2024
MARKET STATISTICS
PLANNED & UNDER GRADE A WTD. AVG. RENT*
INVENTORY YTD LEASING YTD CONSTRUCTION YTD NET
SUBMARKET VACANCY CONSTRUCTION
(SF) ACTIVITY# (SF) COMPLETIONS (SF) ABSORPTION (SF) INR/SF/MO US$/SF/YR EUR/SF/YR
(SF)^

Delhi CBD 1,533,547 21.8% 24,000 0 50,000 24,000 285 41.01 38.04
South-East Delhi 7,092,653 15.8% 46,800 0 0 12,800 98.5 14.17 13.15
Delhi International Airport (DIAL) 1,366,825 12.1% 519,000 3,445,000 0 (96,561) 223.3 32.12 29.80
Cyber City 15,712,813 3.4% 1,340,864 2,000,000 0 47,656 119.9 17.25 16.00
MG Road 3,331,886 12.1% 86,701 0 0 42,999 120.9 17.39 16.13
NH8 – Prime 16,042,756 13.5% 599,704 1,834,000 525,993 474,117 94.3 13.57 12.59
Golf Course Road 6,071,262 9.3% 418,696 750,000 314,000 28,711 93.8 13.50 12.53
Gurugram Others 47,768,218 35.6% 1,579,151 3,483,498 462,000 1,200,149 60.3 8.68 8.05
Noida 42,097,685 27.4% 1,362,769 5,628,500 1,773,520 1,177,512 52.9 7.61 7.06
Total 141,017,645 24.0% 5,937,055 17,140,998 3,125,513 2,910,683 66.3 9.54 8.85

The report highlights Grade A details only. Certain indicators are historically corrected by addition / deletion of older / refurbished projects as per grade A classification and accounting for
changes in built-up / leasable area besides adjusting tenant leases to reflect accurate market conditions.
^ Includes planned & under construction projects until 2026
Net absorption refers to the incremental new space take-up Arun P Nair
#YTD gross leasing activity includes pre commitments and term renewals
*Weighted average rental rates for vacant spaces that provide core facility, high-side air conditioning and 100% power back up
Manager, Research Services
IT-BPM – Information Technology – Business Process Management +91 22 67715555 /[email protected]
Key to submarkets:
Delhi CBD – Includes Connaught Place Suvishesh Valsan
South-East Delhi – Includes Saket, Jasola, Malviya Nagar, Vasant Kunj, Nehru Place, Shastri Park, New Friends Colony, Okhla, Munirka and Parts of Shalimar Bagh and Shivaji Marg Director, Research Services
Delhi International Airport (DIAL) – Includes Aerocity
Gurugram Others – includes Sohna Road, Golf Course Extension Road, Udyog Vihar, NH-8 Non Prime, Gurgaon-Faridabad Road and Southern Peripheral Road and excludes Manesar +91 22 67715555 / [email protected]
Noida – excludes Greater Noida
US$ 1 = INR 83.4 € 1 = INR 89.9
Numbers for the second quarter are based on market information collected until 20 th June 2024

KEY LEASE TRANSACTIONS Q2 2024

PROPERTY SUBMARKET TENANT SF TYPE
cushmanwakefield.com
TRIL IT City Tower 1 Gurgaon Others Ciena 135,000 Fresh Lease
About Cushman & Wakefield
Prestige Trade Tower DIAL Aerocity Deloitte 175,000 Pre-commitment Cushman & Wakefield (NYSE: CWK) is a leading global commercial real
estate services firm for property owners and occupiers with
approximately 52,000 employees in nearly 400 offices and 60 countries.
DLF Building No. 6 DLF Cyber City WeWork 115,000 Fresh Lease
In 2023, the firm reported revenue of $9.5 billion across its core services
of property, facilities and project management, leasing, capital markets,
SIGNIFICANT PROJECTS PLANNED AND UNDER CONSTRUCTION and valuation and other services. It also receives numerous industry and
business accolades for its award-winning culture and commitment to
PROPERTY SUBMARKET MAJOR TENANT SF COMPLETION Diversity, Equity and Inclusion (DEI), sustainability and more. For
additional information, visit www.cushmanwakefield.com.

Capital Business Park Technica Tower Gurugram Others NA 516,906 Q3 2024 ©2022 Cushman & Wakefield. All rights reserved. The information contained within
this report is gathered from multiple sources believed to be reliable. The information
TRIL Intellion Park (TRIL IT City) Tower 3 Gurugram Others NA 1,000,000 Q1 2025 may contain errors or omissions and is presented without any warranty or
representations as to its accuracy.