Office transactions in NCR improve to pre-pandemic levels: Report

Office transactions in NCR improve to pre-pandemic levels: Report

NCR registered office transactions of 0.18 mn sqm while new completions were reported at 0.10 mn sqm in Q3 2021, according to a report by international property consultant Knight Frank.

The cumulative office transactions for the first nine months of 2021 were reported to be at 0.40 mn sqm. Due to the strong momentum in new leasing, NCR witnessed marginal rental value uptick YoY and in sequential terms.

“The NCR market has recorded a healthy recovery in office transactions in Q3 2021. Going forward, as the economy moves towards normalcy and as more and more corporates get back to Work from Office, transactions in this market is expected to improve further,” said Rajani Sinha, Chief Economist & National Director – Research, Knight Frank India.

In terms of rental values, NCR was the only market that experienced growth in Q3 2021 (YoY). The landlords’ strategy of alluding to relaxed lease terms is reflected in the fall in rentals on YoY basis across most markets. However, the fall in rentals has reduced in the last few months.

According to the report the fourth quarter of 2021 could see heightened traction as seen in 2020, if infection levels continue to remain low and vaccination targets are achieved.

NCR’s residential sales and new launches witnessed strong growth of 48% and 119% YoY respectively in Q3 2021. The city recorded sales of 9,101 residential units and launches of 8,983 residential units during this period. Weighted average residential prices in the NCR market remained stable during the quarter.

Like most sectors, the real estate industry also looked at defining the alternative channels of operability and re-engineered the sales channels with prospective buyers. The pricing dynamics were relooked and offers such as flexible deferred payments, mega-discounts and free parking or furnishing were floated around by multiple developers from National Capital Region (NCR),” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

“Talking about Delhi NCR, we can say that the market has seen positive movement pointing towards healthy growth in future. The fact that the percentage of luxury in overall sales is increasing and other segments getting the desired attention proves that the market here is working as per the demand,” he added.

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