Lease agreements for office spaces dispersed across more than 5.4 million sq. ft. in Gurgaon will be invalid by the close of this year.
Out of this, the maximum number of leases for 1.87 million sq. ft. office space would expire by March end. This was showcased by the data from a real estate information and analytic firm.
The anticipated expiries this year are in excess of 46% as compared to those seen in the year 2017. Last year witnessed a total of 3.7 million sq. ft. commercial spaces making a beeline for to renew their leases.
The excessive number of leasing contract expiries accompanied by existent supply projection show that there is a likelihood of rentals to be held at stability in the Gurgaon commercial real estate market in 2018.
Average commercial lease rents in Gurgaon experienced a shoot-up of 5.4% and 8.9% since the past two years, appropriately. Last year, the standard rentals for business properties elevated to ₹98 per sq. ft. from ₹93 per sq. ft. in 2016 and ₹90 per sq. ft. in 2015.
Besides the March quarter, in which 1.87 million sq. ft. office space leases will come to expire, huge contracts are expected to pour in the fourth quarter of 2018 for large 1.76 million sq. ft. space in the pipeline for restoration. The June and September quarters are both in for 1.83 million sq. ft. of office spaces expiries of lease contracts.
In 2017, possessors from IT-enabled services (ITeS) sector reigned over the commercial realty leasing in Gurgaon. About 43% of commercial spaces were leased by holders from ITeS sector, whereas 13% was hired by occupiers from banking, financial and insurance sectors and almost 11% by consultancies.