NCR is the second most populous agglomeration and is spread over a vast area incomparable to other Indian cities. It encompasses 20 districts spread across Delhi and three states of Haryana, Uttar Pradesh and Rajasthan. Delhi City is the seat of the central government while the immediate suburbs are the major growth drivers for development. The entire conurbation contributes around 7.1% of India’s GDP. The region has one of the largest metro rail networks in the country, criss-crossing across all the major suburban towns and connecting them to the main city of Delhi
It has a well-diversified economic base, with the growth of the commercial office sector driven largely by the IT/ITeS industry. In addition, it has a wide-spread manufacturing and industrial base across multiple industrial areas in Delhi as well in the suburbs. NCR is also an education hub while serving as a magnet for attracting talent from across the country. This has resulted in a mix of firms ranging from banking, financial services, advertising, media services, tourism, airlines and e-commerce being present here.
NCR is the third biggest office market after Mumbai and Bangalore with NCR’s office stock currently at 96.3 million sq ft. The city’s office market is also driven by its suburban markets of Gurgaon and Noida, which are the biggest office corridors in terms of stock, supply and absorption. NCR’s overall vacancy is 30.2%; however, if peripheral and low performing markets of Manesar and Greater Noida are removed, overall vacancy declines to 25-26%.
Source : JLL REIS 1Q17
The NCR office market is primarily split in to the Delhi City, Gurgaon and Noida. Delhi City comprises the CBD and SBD, with Gurgaon and Noida further split in to constituent office corridors based on geographic demarcation. The main CBD and SBD have ceded much ground to the Suburbs and barring recent commercial developments in SBD near the International Airport and new supply in the CBD, it is the suburbs which are driving both new supply additions as well as net absorption.