Retail space absorption in Delhi-NCR down 92% in Jan-March qtr

This makes it it the lowest absorption in the last 15 quarters mainly due to constraints in availability of space

The retail space absorption in Delhi-NCR saw a decline of about 92 per cent in the first quarter this year, making it the lowest absorption in the last 15 quarters mainly due to constraints in the availability of space.

The net take-up was around 50,700 sq ft, 83 per cent of which was contributed by the Suburbs, real estate research firm Jones Lang LaSalle said in its Asia Pacific Property Digest for first quarter 2013.

In the Prime South, Forever 21 leased 11,000 sq ft in DLF Courtyard in Saket, while Kenneth Cole New York and ALT leased 2,000 sq ft each in Ambience Mall in Vasant Kunj. In the Prime Others, Reliance Digital leased 8,099 sq ft in Ansal Plaza and Haze leased 3,000 sq ft in Westgate Mall in Rajouri Garden. Other deals in this submarket were generally smaller sized leases. The Suburbs saw The Collective and Zara leasing 5,000 sq ft and 12,500 sq ft, respectively, in Ambience Mall in Gurgaon. Pizza Hut leased 2,400 sq ft in Ansal Plaza in Noida, while UCB leased 1,200 sq ft in Opulent Mall in Ghaziabad.

Retailers remained active in pre-committing to space in upcoming retail projects that offered the promise of good location, design, branding and business potential, the report said. No new projects became operational in the first quarter,2013 in the NCR-Delhi retail markets.

The domestic consumption is expected to remain resilient in the coming months, providing impetus to retailers to continue pursuing deals in under-construction projects that offer positive business potential. Besides, the positive movement of FDI in single brand and multi-brand retailing is expected to spur overall demand in the retail sector. New entrants and active retailers are also expected to plan expansions, contributing towards absorption going forward.

In the office space in Delhi-NCR, the demand momentum from occupiers resulted in healthy take-up, at 700,000 sq ft, an increase of 76 per cent quarter on quarter. Five projects became operational – three in Gurgaon (all IT SEZ towers) and two in Noida (one IT and one non-IT building) in the first quarter.