Inspite of being the favourite destination for finance and IT companies, Gurgaon (now Gurugram) saw a dip of about 30% of the rented out space for offices because of the scarcity of quality places. Gurgaon saw many companies which had share of leases halved.
The area which is leased to companies was 3.87 million square feet in 2016. However, since the new supply of around 2.4 million square feet is scheduled for completion, the leased area is assumed to increase in 2017. Due to the fact that this supply has not been very fulfilling in the last few years, it becomes a major cause of the declination of the rented office space in Gurgaon and other cities.
Technology sector, which is the main sector of the leasing business of the city, saw its share decreasing from 64% in 2015 to 32% in 2016, which is half of the previous figure.
The amount by which the share of IT sector declined cannot be completely believed because it is said to have been made up by the manufacturing and service sectors, both of which have escalated to 20% and 11% respectively. But despite all the challenges, Gurgaon is still the most favoured spot for office purposes in the national capital region. It accounts for 51% in the total concentration with Noida and Delhi closely following behind.
If we compare the office space available for office lease in both the years, it was 10.2 million sq feet in 2015 whereas in 2016 it was 9 million sq feet.
Udyog Vihar and industrial areas comprised of about 30% of the total available office space in Gurgaon. While National Highways had 22% along their way, Sohna Road and Golf Course Extension road together had only 18%. The rest of the office space left comprised of Manesar with 11%, Golf Course with 8%, MG road 5% and institutional sectors with just 3%.
DLF marked the highest growth in rent of 13% because of the shortage of supply of spaces in rented offices in gurgaon. The extension of the Rapid Metro proved to be advantageous for the Golf Course Road as its rentals increased by 2%.