gurgaon_comm market update

8/7/2019 Gurgaon_Comm Market Update

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Feb

10

GURGAON

INSIGHTCOMMERCIAL MARKET UPDATE



Market Update: Gurgaon Commercial Market, November 2009

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Gurgaon Commercial Property Market

Overview Gurgaon has now established itself as the industrial and financialcenter of the state of Haryana. It is one of the major satellite towns inthe National Capital Region of India. Over the past 15 years, the cityhas undergone rapid development and transformation from anagricultural based small town to a ‘Millennium-City. It has become one

of the most sought after destination for commercial activities in NCR.Close proximity to Delhi & International Airport has made it home to anumber of multinational and domestic companies wanting to establishtheir operations in NCR. Gurgaon presently is regarded as the best cityin India to work in, according to a survey by Business Today magazine.The per capita income in Gurgaon is 1,22,212 INR, which is the 3rdhighest in India after Chandigarh and Mumbai.

Office Space

The lack of Grade-A office spaces in Delhi, very high cost of operationsand expensive housing options have prompted large corporates to setup their offices in Gurgaon. The boom in this segment has been fuelledby a continued demand from IT/ITES, BFSI, Telecom and Pharmacompanies. Locations along the stretch of NH-8, M.G. road and Golf

Course road have already established themselves as prime addressesin Gurgaon. Post year 2001 almost all major companies haveestablished their presence in Gurgaon. This segment will continue tosee demand in future.

IT / ITES

Haryana is amongst the first states to introduce the IT policy; this hashelped Gurgaon to become home to major IT companies in north India.It is also the most favored destination for BPO and knowledge basedindustries. IT/ITES companies like Wipro, TCS, IBM, Genpact, etc havechosen Gurgaon because of abundant supply of affordable office spacesuitable for these large format offices. DLF Cyber-City, areas along NH-8, and IMT Manesar are fast developing as IT/ ITES corridors.

Retail

Gurgaon’s organized retail sector is rapidly expanding in line withgrowth in the residential sector. Gurgaon have led the ‘Mall Culture’ inthe NCR with a large number of developments coming along M.G.Road, NH-8 and Sohna road in the last 5 years. The increasingdisposable incomes, the progressive degeneration of joint families intonuclear, the easy availability of credit and the aspiration to move up thevalue chain have accelerated the growth pace of the country’s retailsector. By far Gurgaon has the largest share of retail space supply inthe NCR.

Hospitality

With the increase in influx of business travelers owing to the growth ofcorporate and IT/ ITES service Industry; Gurgaon’s hospitality sector is

experiencing a significant demand especially considering the un-affordability and unavailability in Delhi. Gurgaon now has some of thebest five star and other luxury hotel chains, these include The LeelaKempinski, Trident Hilton, Park Plaza Hotel, Galaxy Hotel, FortuneSelect Global, Bristol Hotel, Lemon Tree Hotel, Crowne Plaza HotelWestin and many more. This cluster of five star and other hotels inGurgaon lends much to the aura of the city being an internationalcorporate hub.

Gurgaon Hospitality Sector HighlightsGood potential for midscale hotels.

Hospitality demand is backed by demand for office space.

Average Occupancy rate 58%-60%.

Upcoming Supply to add another 1000-1500 rooms in the next 3-

5 years.Upcoming Location along Golf Course Road, NH-8 & Manesar.

44%

27%

18%

11%

Supply - 2009

IT Park OFFICE IT SEZ RETAIL

2.482

4.015

0.803

2.13

10.241

6.479

4.18

2.56

IT Park

OFFICE

IT SEZ

RETAIL

Supply (Million Sq Ft)

2009 2008

Gurgaon: Commercial Property Market




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Established Markets

Udyog Vihar: IT/ITES

This is the oldest commercial zone in Gurgaon. It was developed on theflatted factory model similar to Delhi’s Okhla Industrial Area. Over theyears it has established itself as an Industrial, Export, Institutional andIT zone. The major catalyst for the growth of this zone and Gurgaon

has been the setting up of the Maruti Udyog Limited. This has resultedin the mushrooming of several industrial ancillary units in this zone.Unitech has developed an SEZ called Info-Space in this zone that isnear completion. Office spaces in this zone fetch lower rentals than theadjacent DLF Cyber City on the other side of NH-8 primarily due to non-availability of adequate infrastructure. Some of the major occupiers inthis zone are TCS, Wipro, Agilent Technologies, India Bulls, Alcatel,IBM Daksh, HCL, NIIT, Educomp.

DLF Cyber City (Sectors25, 25A): Office Space & IT/ITES

This particular zone along NH-8 and the areas along the sector roadconnecting M.G. Road to NH-8 are largely developed by DLF – one ofthe largest and established private developer in Gurgaon. This zonehas been undertaken by DLF and houses the biggest names of

Corporate India like Erricson, Sapient, Convergers, Nestle, IBM, WNS,Bank of America, Genpact, Videocon etc. There is an IT-SEZ alsodeveloped by DLF in this zone. Extension of Delhi Metro in this zone isrecently being proposed to the government by DLF to be undertaken ina PPP model.

MG Road: Retail, Hospitality & Office Space

Multiple private developers like DLF, Unitech, and MGF etc undertookinitial development on MG road which connects south Delhi to NH-8 inGurgaon. Metro route from Delhi is along the MG road and is expectedto reach IFFCO Chowk by 2010. This road is ideally called the mallroad has seen the mushrooming of malls at both sides with somepremium office spaces in between. The prominent developers alongMG road are Unitech, DLF, JMD, SS group, Vatika, EMAAR MGF,

Realtech, Suncity and ABW.

Majority of the projects in this zone are completed and occupied. VatikaCity Point, ABW Business Suits and Suncity ’s Time Tower offer freshsupply of office commercial space.

MG Road

DEVELOPER PROJECTCAPITAL VALUES (RS/

SQ FT)

RENTALS (RS/

SQ FT)STATUS

JMD BUILDERS CORPORATE SUITE 12000-16000 70-90 OC

REALTECH GROUP CORPORATE SUITE 13500-15500 90-130 UC

VATIKA VATIKA CITY POINT 12000-14000 85-110 READY

VATIKA FIRST INDIA PLACE 13000-15000 85-120 OC

ABW ABW TOWERS 13000-16000 90-130 READY

JMD BUILDERS CORPORATE SUITE 13000-15000 90-130 OC

JMD BUILDERS REGENT MALL 11000-13500 55-80 OC

JMD BUILDERS REGENT SQUARE 11000-13000 60-80 OC

SUN CITY PROJECTS TIME TOWER 14000-16000 80-100 OC

UNITECH GLOBAL BUSINESS PARK 12000-16000 80-120 OC

DEVELOPER PROJECTRENTALS

(RS/ SQ FT)STATUS

UNITECH INFOSPACE 65-75 READY

UPPALS COSMOS CITY 45-55 OCCUPIEDBPTP I PARK NA UC

Average Rentals 35-45 Rs./Sq.Ft.

Udyog Vihar

Gurgaon: Udyog Vihar

There are 43 malls, including the biggest – ― Mall of India ‖ , giving Gurgaon the 3rd highest number of malls in an Indian city.

India's outsourcing industry was born in Gurgaon in 1997 when GE Capital International Services (GECIS) was set up as the India-based business process services operations of GE Capital.

Gurgaon contributes over 50% of Haryana's income tax revenues along with Faridabad.

DEVELOPER PROJECTRENTALS

(RS/ SQ FT)STATUS

DLF BUILDING NO. 8 70-80 OCCUPIED

DLF BUILDING NO. 9 80-90 OCCUPIED

DLC BUILDING NO. 10 60-75 OCCUPIED

DLF INFINITY TOWERS 80-120 OCCUPIED


DLF Cyber City

Gurgaon: DLF Cyber City

Average Capital Values 12000-16500 Rs./Sq.Ft.


MG Road

Gurgaon: MG Road

0

3000

6000

9000

12000

15000

18000

C O R P O R A T E S U I T E


V A T I K A C I T Y P O I N T

F I R S T I N D I A P L A C E

A B W T

O W E R S


R E G E N T M A L L

R E G E N T S Q U A R E

T I M E T O W E R

G L O B A L B U S I N E S S

P A R K

Pricing Trend : MG Road (Rs/Sq Ft)




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NH-8: Office Space & IT/ ITES

This zone comprises of the areas along National Highway-8 betweenIFFCO Chowk and Rajiv Chowk. Most of the projects in this zone arecompleted and are occupied. Unitech, BPTP, JMD, and DLF are theprominent developers present in this zone. The construction of anotherIT-SEZ space at Silokhera by DLF is underway and is expected to be

complete by next year.

Golf Course road: Retail, Hospitality & Office Space

Golf Course Road has established itself as an attractive office locationin the past few years. This stretch constitutes of a diverse occupier mixspanning across IT/ITES, BFSI and pharmaceutical companies. The

rental values have corrected to the prevailing rates of INR 70-80 per SqFt / month from their peak values of INR 120-130 per Sq Ft / month inearly 2008. It is anticipated that demand for office space in this locationwill double in the next few years with the rental values appreciating totheir peak values, highlighting the potential of healthy returns. To caterto the growing demand of the location approximately 3.5 million Sq Ft ofcommercial office space supply is planned over the next few years.


SQ FT)

Rentals (RS/

SQ FT)STATUS

BPTP PARK CENTRA 7000-12000 60-65 OC

MVL I PARK 7500-8500 60-85 READY

UNITECH CYBER PARK NA 75-95 OC

UNITECH SIGNATURE TOWER NA 80-110 OC

UNITECH SIGNATURE TOWER-2 8727 NA UC

UNITECH BUSINESS PARK NA 85-110 OC

NH-8: IFFCO Chowk to Rajiv Chowk

Golf Course Road

DEVELOPER PROJECTCAPITAL VALUES

(RS/ SQ FT)

RENTALS (RS/

SQ FT)STATUS

EMAAR MGF PALM SPRING PLAZA 11500-14500 NA UC

PARAS BUILDTECH TWIN TOWERS 11000 70-90 READY

REALTECH GROUP VERITAS BUSINESS 11000-12500 NA UC

SUN CITY PROJECTS BUSINESS TOWER 11000-25000 NA UCDHOOT + NINEX TIMES CENTRE 11500-14000 70-85 OC

VATIKA VATIKA ATRIUM NA 90-95 OC

VATIKA VATIKA TOWERS NA 90-95 OC

ORCHID INFRA ORCHID CENTRE 12000-14000 80-100 OC

ADVANCE INDIA MASTERPIECE NA 90-125 OC

WELLDONE GROUP AUGUSTA POINT 12000-14000 80-100 OC

CLARION CENTRUM PLAZA 80-100 OC

NARSI GLOBAL FOYER 10000-13500 70-90 READY

DLF CENTRE COURT NA 80-100 OC

Gurgaon: Golf Course Road



Golf Course Road

0

3000

6000

9000

12000

15000

18000

P A L M S P R I N G

P L A Z A

T W I N T O W E R S

B U S I N E S S T O W E R

T I M E S C E N T R E

O R C H I D C E N T R E

A U G U S T A P O I N T

C E N T R U M P L A Z A

G L O B A L F O Y E R

Pricing Trend - Golf Course Road



NH-8: IFFCO Chowk to Rajiv Chowk

Gurgaon has seen an organic growth over the last 10-15 years unlike Noida that boasts of better planning & infrastructure; this city has surpassed its opponents by it’s shear pace of development and excellent connectivity to Delhi & it’s International Airport. All this aided by favorable government policies and initiatives.

In the wake of this corporate migration, the city has attracted thousands of young professionals who find that living, working and playing in Gurgaon is cheaper, more convenient and fun than Delhi.

The city’s employment growth rate is second only to Noida’s—another Delhi suburb —while it boasts of the third highest per capita income after Chandigarh and Mumbai, at Rs 1,22,212.




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Upcoming Locations

The master plan 2012 for Gurgaon has demarcated pockets forcommercial development along all major Sector roads, in the vicinity ofresidential and transportation hubs. Also the expected demand forcommercial space in these new sectors has triggered development inthe peripheral areas like Golf Course Extension Road, Manesar &

Sohna road.

12000

10000

65005500

4000 4000

1650015000

8000 7500 7000 7000

0

4000

8000

12000

16000

20000

MG Ro ad G ol f Co ur se

Road

Z1:Golf

Course

Extension

Road

Z2:Sohna

Road

Z3: NH-8,Rajiv

Chowk to

Sohna to

Sohna

Z4: Manesar

Capital Values-Rs / Sq Ft

Mi ni mu m M ax imu m

6070

5040 40

30

120110

65 65 65

45

0

20

40

60

80

100

120

140

MG Ro ad G ol f C ou rs e

Road

Z1:Golf Course

Extension

Road

Z2:Sohna Road Z3: NH-8,Rajiv

Chowk to

Sohna to

Sohna

Z4: Manesar

Rentals Rs / Sq Ft

Mi ni mu m Max imu m

ZONE 4

ZONE 5

ZONE 3

ZONE 1

ZONE 2




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Zone1: Golf Course Extension Road

This zone includes the sectors on the Southern Periphery road thatconnects Golf course road to Sohna road. This area has connectivitywith Sohna road, Golf course Road and Faridabad along with theproposed metro route along this road in addition to the existing 4 –laneroad ensuring smoother traffic movement and connectivity. This

location is currently witnessing strong interest from investors.Projects in this zone are under construction and open for sales. Someprominent developers undertaking commercial development in thisZone are Emaar MGF, Unitech, Pioneer Urban, Ansals, BPTP, TDI,Landmark and Universal.

Zone2: Sohna Road

This is one of the fast developing residential and commercial corridorsin Gurgoan. A slew of large and midsize retail and office spacedevelopments have been launched on this road during 2003-2008.Initially investors backed a bulk of the demand, as it provided an

alternative to the overly priced properties in MG Road and Golf CourseRoad.

Most projects in this zone are in their final stages construction andwould be operational in the short term. Some prominent developersundertaking commercial development in this Zone are Vatika, Ansals,Universal, JMD, Spaze.


(RS/ SQ FT)STATUS

EMAAR MGF DIGITAL GREENS 10000 UC

JMD JMD EMPIRE 6500-7500 UC

PIONEER URBAN URBAN SQURE 6500-7500 New Launch

BPTP CENTRA 1 6000-7500 UC

TDI + GAMBHIR SILVERTON TOWERS NA READY

UNITECH BUSINESS ZONE 6500 UCEMAAR MGF EMERAL PLAZA 6250 New Launch

SUNCITY PROJECTS SUCCESS TOWERS 7600-8500 UC

SALCON AURUM 8700-9800 UC

EMAAR MGF PALM SQUARE 9500 UC

LANDMARK CYBER PARK 5500 UC

ANSALS OFFICES 6250 UC

UNIVERSAL BUSINESS PARK 8000-10000 UC

Zone 1: Golf Course Extension Road


(RS/ SQ FT)

RENTALS (RS/

SQ FT)STATUS

BESTECH BUSINESS TOWER 5250 NA UC

WELLDONE TECH PARK 6000 45-60 UC

ILD TRADE CENTE 7500 40-60 UC

JMD BUILDERS MEGAPOLIS 5750 NA UCORCHID INFRA ORCHID BUSINESS PARK 7500 NA UC

SPAZE PLATINUM PARK 8000 NA UC

SPAZE SPAZE IT PARK 6500 NA UC

VATIKA VATIKA TECHNOLOGY PARK 7500 40-45 OC

SPAZE SPAZEDGE 8500 NA UC

UNIVERSAL TRADE TOWER 14000 75 OC

VIPUL VIPUL WORLD COMMERCIAL 8000 NA UC

Zone2: Sohna Road



Zone2: Sohna Road

0

3000

6000

9000

12000

15000

B U S I N E S S T O W

E R

T E C H P A

R K

T R A D E C E N

T E

M E G A P O

L I S

O R C H I D B U S I N E S S P A

R K

P L A T I N U M P A

R K

S P A Z E I T P A

R K

V A T I K A T E C H N O L O

G Y

P A R K S P

A Z E D

G E

T R A D E T O W

E R

V I P U L W O R

L D

C O M M E R C I A L

Pricing Trend Zone2: Sohna Road

Gurgaon: Sohna Road

0

3000

6000

9000

12000

D I G I T A L G R E E N S

J M D E M P I R E

U R B A N S Q U R E

C E N T R A

1

B U S I N E S S Z O N E

E M E R A L P L A Z A

S U C C E S S T O W E R S

A U R U

M

P A L M S Q U A R E

C Y B E R P A R K

O F F I C

E S

B U S I N E S S P A R K

Pricing Trend Zone1: Golf Course Extension Road



Zone 1: Golf Course Extension Road

Gurgaon: Golf Course Extension Road

Majority of the projects both residential & commercial on Sohna Road are complete, along with the widening and extension of the existing road has pushed the prices in this Zone.

Golf Course Extension road is witnessing a slew of activities since the completion of the first part of the southern peripheral road; this Zone has benefits from the existing developments and infrastructure around it.




7 | P a g e

Zone3: Along NH-8

According to the master plan a commercial belt is planned along NH-8.Anticipating a huge demand, developers launched number of projectsalong the NH-8 towards Manesar. Though this Zone is yet to see it’spotential owning to its superior connectivity these areas will alwayshave an advantages over the other developments. A number of

commercial projects in this Zone are still in the pipeline waiting for thedevelopment in the adjoining residential sectors to take-off.

None of the projects in this Zone are ready for possession. Someprominent Developers providing for commercial development in thiszone are DLF, ABW, Orris, Bestech, Uppals, MVL etc.

Zone4: Manesar

Manesar is a fast growing Industrial town in Gurgaon district of theState of Haryana. It has transformed from a sleepy village to one of thefastest growing townships in India. More than 100,000 people go towork in Manesar from adjoining places. The Gurgaon Manesar Master

Plan projects the population of 37,00,000 by 2021. It has manyfactories, offices, hotels and educational institutes.

Manesar already houses some of the most leading global brands likeToyota, Mitsubishi, Honda, Suzuki and the like, who are makingcolossal investments in Manesar real estate. Manesar is still undermetamorphosis and the day is not far when it will materialize into a welldeveloped city with all basic amenities apart from the more complexones at arm’s length. According to recent findings in real estate,Manesar is listed amid top prospective investment locations in India.Maruti Suzuki is planning major R&D hub in Manesar to be completedin 2010.


SQ FT) STATUS

ORRIS FLOREAL TOWER 7400 UC

ORRIS BUSINESS PARK 6000 UC

UPPAL CEIL SQUARE 5500 UC

ABW PLATINUM TOWER 6000-7000 UC

BESTECH GROUP CYBER PARK 5500 UC

DLF CORPORATE GREEN 4750 UC

INNOVATIVE LEGEND HIEGHTS 6270 UC

MVL INDIA BUSINESS CENTRE 3600 UC

VIGNESHWARA AQUARIUS 5500 UC

UNITECH INFOSPACE 6000 UC

Zone3: NH-8, Rajiv Chowk to Manesar


(RS/ SQ FT)STATUS

ANANTRAJ TECHNOLOGY PARK LEASE MODEL UC

EROS CORPORATE PARK 7750 - 17500 OC

RAHEJA RAHEJA SQUARE 8000 - 13500 OC

VIGNESHWARA I VALLEY 7500 UC

A N BBIULWELL SPIRE EDGE 5600 UC

SHAPOORJI PALLONJI INFOCITY LEASE MODEL UC

ABW COMMERCIAL TOWER 5500-6500 UCAMRAPALI CORPORATE HUB 6500-7500 UC

Zone4: Manesar



Zone3: NH-8, Rajiv Chowk to Manesar

Gurgaon: Golf Course Extension Road

0

3000

6000

9000

F L O R E A L T O W E R

B U S I N E S S P A R K

C E I L S Q U A R E

P L A T I N U M

T O W E R

C Y B E R P A R K

C O R P O R A T E

G R E E N

L E G E N D

H I E G H T S

I N D I A B U S I N E S S

C E N T R E

A Q U A R I U S

Pricing Trend Zone3: NH-8, Rajiv Chowk to Manesar

0

3000

6000

9000

12000

15000

C O R P O R A T E P A R K

R A H E J A S Q U A R E

I V A L L E Y

S P I R E E D G E

C O M M E R C I A L

T O W E R

C O R P O R A T E H U B

Pricing Trend Zone4: Manesar

Average Capital Values 4000-7000 Rs./Sq.Ft.Average Rentals 35-45 Rs./Sq.Ft.

Zone4: Manesar

Year 2008-9 witnessed a 10-15% correction in both capital and rental values across Gurgaon, especially in the established markets.This assisted the fresh supply in the emerging areas like Sohna Road &Manesar to attract fresh leases &occupiers by offering cost effective commercial & office space.Activity in commercial segment within the new sectors adjoining Dwarka,Delhi (Zone 5) is yet to kick-start.Though this zone has good future potential owing to its proximity to Delhi & the international airport along with affordable housing options.




8 | P a g e

Rohit Mehra [email protected]

Neel Kamal [email protected]

Disclaimer:

This information is provided for information purposes and does not constitute aninvitation or offer to subscribe for or purchase any of the products or services. All therepresentations made are for illustration purpose only and is not intended to beexhaustive.

Information and opinions presented in this material have been supplied in good faithand has been obtained or derived from sources we believed to be reliable, but do notguarantee, to be accurate or complete. We make no representation as to the accuracyor completeness of any information presented herein. Spire World accepts no liabilityfor losses arising from the use of this material and is not responsible for error oromissions that may occur. This information is expected and is subject to change andmay vary at any time. The information provided is not intended to provide a sufficientbasis on which to make an investment decision.

The information herein constitutes forward-looking statements. Due to variousuncertainties, actual events and the actual performance of the economy may differmaterially from those reflected or contemplated in such forward-looking statements.The information herein is not intended to provide and should not be relied upon foraccounting, legal or tax purposes and should not be construed as an advice orinvestment recommendation.

Contact:

Spire World

4H, Plaza M6, District Center, Jasola

New Delhi – 110025, India

T: +91 11 4258 5858

F: +91 11 4258 5814

mailto:[email protected]




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