6th April, 2023 - March Monthly Wrap Gurgaon

Real estate markets remained on a solid footing for March 2023.

Both commercial office space leasing and residential sales recorded good numbers on deal activity as towards the end of the month even retail leasing joined in on the party.

Office rents remained mostly on market par for March with BFSI, flex, consulting, IT picking up space as occupiers. RBI has kept repo rates unchanged for this time around. We see the economy looking good on domestic strong consumption for the next couple of quarters. At the end of the day the opportunity here we have in India is tremendous for the long term with FII's wanting in on the India story.

The latest round in transactions sees key interest by funds to pick up assets in Gurgaon Delhi as bets for the medium term.

Office space moves happened in all the major submarkets with some rent escalation in SBD particularly. We see the next 6 months on office space leasing to be strong as MNC's also add to the absorption numbers. Flex players are keen to take up space at the moment with large requirements on the anvil in back to back deals and on lease basis.

Plates for space that have seen absorption in Gurgaon vary from 15000 sft – 35,000 sft in key markets.

The Residential sales segment saw velocity in both resale and primary markets. Capital values continue to inch upward as supply remains muted in a mature market.

Transactions for office space happened on MG Road and Udyog Vihar in the plates above mentioned whilst residential sales happened in super premium and premium segments.

Residential rentals escalated to the tune of 7% this quarter visa vi the previous quarter on new leases alone not counting deal renewals.

Retail malls also saw escalation in rentals qoq for premium end brands signing leases at marquee locations.

Some key highlights from March :

a)     Reference laden deals strike higher volumes in office space leasing this month visa vi February

b)    Large ticket deals are being scouted by occupiers on commercial assets

c)     Residential resale markets see evolution in deal times with deal times hitting 2 months on an average at max as an average barometer

d)    Retail rentals carry on an upward march as quality brands secure space in malls and high streets

e)    Catchment areas for tenants and business expand with mature market dynamics playing out

Good things to come in the next 6 months across deal tables and asset segments, Gurgaon represents a strategic advantage to corporate office occupiers and quality living.