Research &

Forecast Report
NOIDA | Office
January 2015

Recovery seems to
be on cards with
revived IT/ITeS
demand
The NOIDA office market seems to have entered recovery
mode in the second half of 2014. Revived tenant demand
from the IT/ITeS sector and other associated industries has
resulted in an increase in office absorption towards the end
of the year. In 2014, NOIDA recorded total office absorption
of around 1.8 million sq ft compared to last years 2.28
million sq ft.
The city continues to be driven by back offices of mediumsized IT/ITeS companies that contributed 59% of the total
office absorption, followed by BFSI 21% and engineering,
media and entertainment 19%. Among the landmark deals
concluded during the year, Samsung leased 0.15 million
sq ft of Grade A office space in Okaya Building located at
Sector 62. NEC HCL took 0.12 million sq ft in Logix Techno
Park at Sector 127 and RDB Insurance took 0.10 million sq
ft in building A-31 located at Sector 64. Private equity fund
Blackstones acquisition of two commercial properties, 3Cs
Ozone IT SEZ comprising of 1.5 million sq ft of built-up-area
and IDFC owned Galaxy IT Park comprising of 1.3 million
sq ft is viewed as a ratification of NOIDA as an important
current and future IT destination.

City Office Barometer

INDICATORS

2015

Vacancy
Absorption
Construction
Rental Value
Capital Value

Rental Values
MICRO MARKETS

Commercial
Sectors**
Institutional
Sectors (Non IT)***
Institutional
Sectors (IT)***
Industrial Sector
(IT)****

RENTAL
VALUE*

% CHANGE
QoQ
YoY

95 - 110

0%

0%

50 - 100

-7%

0%

30 - 75

5%

0%

18 - 50

5%

8%

*Indicative Grade A rents in INR per sq ft per month

**Sector 18
***Sector 16A, 62, 125-142
****Sector 124, 57-60, 63-75

This year, not many projects witnessed completion in

NOIDA, and only 1.07 million sq ft of Grade A office space
was added to the citys total inventory. With approximately
19 million sq ft of office space at different levels of
construction, developers refrained from launching more
speculative supply.
The market witnessed 2% average increase YoY in rental

2014

Research & Forecast Report | January 2015 | Colliers International

values for Grade A office space across all the micro-markets.

Capital values also increased by 3% YoY, indicating market
revival.

New Supply And Absorption Trends

6
5

In 3Q 2014, the local governing body approved the hike

in circle rates by 2% for commercial properties, except
for sectors 18 and 38A, where a 17% hike was approved.
For institutional properties, the circle rates increased by
10%. On the contrary, the development authority gave
a nod to the much needed mixed land-use policy that
allows commercial activities in residential sectors. These
commercial activities are allowed in residential areas
having roads with width of 24 m or more. This is likely to
stimulate further other real estate activities like construction
of hospitals, banks, schools, ATM kiosks, guest houses and
other business premises.

4
3
2
1
0

2010

2011

2012

2013

2014

2015F

2016F

Absorption(In Mln sqft)

New Supply (In Mln sqft)

16,000

Forecast

14,000

70

12,000

60

10,000

50

8,000

40

6,000

30

2016

2015

2014

2013

2,000

2012

10
2011

4,000

2010

20

Capital Values INR Per sq ft

90
80

2009

In 2015, occupiers, especially from IT/ITeS, will remain

as the prime drivers, similar to 2014. Approximately 10
million sq ft of grade A office space is at various stages of
construction in NOIDA, which is expected to complete in
next 3 years. However market is likely to see limited new
supply in 2015 as developers will refrain completing project
and adding more speculative supply until substantial leasing
volumes return. The rents expected to increase marginally in
medium term due to restricted new supply.

Rental Values INR Per sq ft Per Month

Average Rental And Capital Value Trend

Trends to watch for in 2015:

Top 5 Transactions of 2014

CLIENT

BUILDING NAME

AREA (SF)

LOCATION

LEASE / SALE

Samsung

Okaya Building

150,000

Sector 62

Lease

NEC HCL

Logix Techno Park

120,000

Sector 127

Lease

RDB Insurance

Independent Building A-31

108,000

Sector 64

Lease

Harris Broadcasting

Correnthum

80,000

Sector 62

Sale

Mediatek

SB Tower

68,000

Sector 16A

Lease

Key Under Construction Projects

BUILDING NAME

DEVELOPER

AREA (SF)

LOCATION

POSSESSION

Delhi One

The 3C Company

2,000,000

DND Flyway

2015

Mist Avenue

Bhasin Group

1,000,000

Sector 143

2015

I Thum

Beaver International

500,000

Sector 62

2015

Source: Colliers International

Notes:
1. Office Market: NOIDA market is comprised of sectors broadly classified as institutional, industrial and commercial sectors. Institutional sectors include sec 16A, 62 and125-142,
industrial sectors include Sec 1-9, 57-60 and 63- 65 while sector 18 is the most developed commercial sector.
2. Rents/Capital Value: Market average of indicative asking price for Grade A office space.
3. Available Supply: Total Grade A office space being marketed for sale or lease in surveyed quarter.
4. City Barometer: Represents increase, decrease or stable scenario; as compared to previous quarter.
5. All the figures in the report is based on market information as on 25th December 2014.

Research & Forecast Report | January 2015 | Colliers International

Primary Authors:

485
63 countries on
6 continents
United States: 146
Canada: 44
Latin America: 25
186
EMEA: 84

$2.1

billion in
annual revenue

1.46

billion square feet

under management

15,800

professionals

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Valuation & Advisory Services & Research
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National Director | Office Services
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