South Delhi demand spills over into Gurgaon

Trammell Crow Meghraj Property Consultants report says it's the new destination for non-polluting industries.

Growth in IT sector, booming economy and construction of Delhi-Gurgaon expressway has all given boost to real estate market in Gurgaon.

With time and changing life style, markets have matured and shown sufficient appetite for high-rise condominium housing as well, according to a report released by Trammell Crow Meghraj Property Consultants.

Unlike other towns in the NCR, the regional development plan for NCR perceives Gurgaon as a centre for non-polluting high technology industries, with an objective of controlling the growth of Delhi, and shifting the growth spill into the suburbs, the survey adds.

Real estate market of Gurgaon has been derivative of property markets of Delhi and for a long time acted as its extension.

Place of residence near to work place is being preferred with more and more corporate setting up their office premises and campus developments in Gurgaon.

Most of the top management and the middle management executives working in Gurgaon have stepped up demand for all types of accommodation in the vicinity of their work place.

This has resulted in both leasing and purchase activities firming up in the last few quarters.

This increased activity resulted in the capital values going up in prime residential buildings in Gurgaon by 20-30 per cent.

Land rates have been appreciating by about 25-30 per cent in last one year in most of the locations in Gurgaon.

With the progressive movement of economic activities into Southern Delhi, Gurgaon received a major growth fillip.

The recent exodus of corporate and multi-nationals from the congestion prone and highly priced CBD of Delhi to Gurgaon, has given a boost to real estate development here.

Gurgaon has emerged as the prime commercial destination with world-class quality and cheaper real estate prices.

The thrust to economic activities was given with the setting up of industrial estates led by the Maruti Udyog Limited.

Simultaneously there was a thrust of residential developments there, particularly those led by the private players, namely Ansals, DLF and Unitech.

These residential suburbs were basically extensions of the South Delhi residential areas.

The success of these also led to the spate of commercial developments where Grade A quality spaces were built and it attracted away the MNCs from the CBD who were looking for larger floor plates, lower rentals, quality spaces and ambience.

Companies such as British Airways, Du Pont, Fluor Daniel, British Gas, Thomas Cook, Seagram's, Gilette, Perfetti, royal Sun & Alliance, Max New Life Insurance, Lucent Technologies, Silicon Graphics, IBM, Beckten Dickenson, Marconi, American Express, HTA, Nestle, Siemens, Rolls Royce, Svedala, etc have already moved to Gurgaon.

The majority of tenants in Gurgaon commercial market comprises of IT and ITES sector, which accounts to approx 57 per cent of the total tenancy.

The rest of the tenants are from sectors like consulting, financial institutions and insurance.

The real estate market for commercial spaces in Gurgaon is quite active.

The continuous flow of corporates to the sub-urban areas has always kept the market active, for which the city is always in want of more commercial space.

High occupancy rate in the commercial towers in Gurgaon well proves the demand and activeness of the commercial market of the city.

The total supply of office space in Gurgaon is approx 8.2 million sq ft with an approx occupancy rate of 88 per cent.

The supply of office space in the pipeline adds up to around 2.5 million sq ft.

Residential market in Gurgaon was initially kick started by a handful of developers like DLF, Ansals and Unitech, who subsequently developed their plotted townships DLF City, Palm Vihar & Sushant Lok and South City respectively.