12th August, 2023 - Office Leasing Wrap: July 2023 Gurgaon, India

Traction in office leasing markets in Gurgaon can be attributed to a robust economy, fundamentals at large on the plus for expansion for both Indian & MNC companies and foreign institutional in asset classes in Gurgaon real estate.

All the major sub-markets have reported a 10% hike in office rents from H1, 2023 to corresponding H2, 2022. Upward bias on rents is expected to continue as top notch companies continue to deliver the goods on EBITDA.

We've moved from a market led largely by BFSI and manufacturing to services and IT driven cos taking up spaces as well as healthcare & flex player moves.

Large deals scouted and closed in this half of the year were independent buildings 2 lac sft / 5 lac ft also at niche location and the works still due for undergoing projects.

Pre-commitment share in deals went up in July from June by a staggering 50% upward movement. Core plus flex continues to be the choice of occupiers and deal terms have modified across negotiations tables.

Landlords have adapted to moving trends as have occupiers in Gurgaon as the market piggybacks hikes in delhi office rents.

We're seeing a combination of space take-ups in CBD, SBD and PBD across office, retail and warehousing asset classes as supply chains have evolved in a post pandemic era.

Some degree of consolidation too has happened as Gurgaon which is where the action businesswise is as a hotbed for investment activity by PE & VC.

July saw reasonable levels of interest by startups in Gurgaon as well as Delhi but this on a yoy basis still lags earlier years. There's smoother absorption by the better brand names in the startup world for obvious reasons. They are being carefully guided into better valuations. We feel this a natural evolution of business models as stringent checks come into place and India avoids any kind of asset bubbles.

 The forecast for office space absorption remains bright in H2, 2023 as occupiers ramp up expansion & consolidation plans in the city of Gurgaon. Larger deals on the anvil and we expect average floor plate deal size to push up in the charts.

Next few months to be interesting!

Future Gold serves marquee clients in tenant / landlord representation & consulting for real estate assets. Since 2006, we've placed top notch companies in Grade A office space and leveraged our experience on all asset classes & stakeholder interests. For more I'm at Shravan.g@futuregold.in