Research &

Forecast Report
NOIDA | Office
April 2015

Absorption
declined in 1Q
2015, despite few
large transactions
The NOIDA office market witnessed a major downturn
this quarter, in terms of absorption. The office market
witnessed about 0.5 million sq ft of office absorption, which
is almost half of 4Q 2014s absorption figure of 1 million
sq ft. Expansion and relocation were the primary demand
drivers this quarter. IT / ITeS continued to be the dominant
sector leasing office space in NOIDA. There was also some
demand from manufacturing companies who leased smaller
office spaces in locations like Sector 62 and 59. The most
significant leasing transaction for 1Q 2015 took place in
Institutional Sector 62, with Kronos leasing 70,000 sq ft in
Okaya Blue. Jubilant Industries signed a 67,000-sq ft lease
at Logix Technopark and Lava Mobile took 60,000 sq ft in a
stand-alone building in Sector 58.
The construction scenario showed signs of improvement,
and the city witnessed the completion of over 1.3 million sq
ft of prime office space. The projects that were completed
this quarter include World Trade Tower by Sapphire Group
measuring over 1 million sq ft and located in Sector 16 and
Stellar Business Park (0.24 million sq ft) by Stellar Group
located in Sector 135 (Expressway).

City Office Barometer

INDICATORS

2Q 2015 F

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

90 - 110

-2%

3%

55 - 110

3%

18%

45 - 65

5%

5%

35 - 55

5%

15%

*Indicative Grade A rents in INR per SF per month

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

At present, approximately, 13 million sq ft of Grade A office

space is available for lease or sale in the NOIDA office
market. Approximately 51% of this vacant stock is located
in Institutional Sectors, including locations like Sector 16A,
Sector 62 and Sectors 125 to 142. About 48% is available in
the Commercial Sector (Sector 18). Overall rise in vacancy

1Q 2015

Research & Forecast Report | April 2015 | Colliers International

1.20
1.00
0.80
0.60

1Q 2015

4Q 2014

3Q 2014

2Q 2014

1Q 2014

0.00

4Q 2013

We anticipate an increase in absorption in the coming

quarters in sectors along NOIDA expressway and Sectors 62
to 65. In the Institutional Sectors, demand will be primarily
from midscale IT / ITeS companies, whereas NOIDA
expressway will see demand from large corporations. An
upward pressure on rents is expected in the Institutional
Sectors due to limited supply addition. Meanwhile, other
markets will remain stable.

3Q 2013

0.20

1Q 2013

Colliers View

2Q 2013

0.40

Average Rental And Capital Value Trend

14,000

Forecast

10,000

60
50

8,000

40

6,000

30

4,000

20

2,000
1Q 2017F

1Q 2016F

1Q 2015

1Q 2014

1Q 2013

1Q 2012

1Q 2011

10

Captial Values INR Per SF

12,000

70

1Q 2010

Rental Values INR Per SF Per Month

90
80

1Q 2009

In a major office sale transaction, Kotak Mahindra Group

and private equity fund New Vernon Capital Llc. have jointly
bought Green Boulevard, an information technology (IT)
park at Noida in the National Capital Region for Rs 270
crore from 3C Company. The property is about 700,000 sq ft
located in Sector 62.

Quarter Wise Absorption

Million Sq.ft.

levels was noticed during the quarter due to less absorption

and addition of new supply.

Top 5 Transactions of the Quarter

CLIENT

BUILDING NAME

AREA (SF)

LOCATION

LEASE / SALE

Kronos

Okaya Blue

70,000

Sector 62

Lease

Jubilant Industries

Logix Techno Park

67,000

Expressway

Lease

Lava Mobile

Individual Building

60,000

Sector 58

Lease

Genpact

Stellar 135

60,000

Expressway

Lease

Oxford

Stellar IT Park

20,000

Sector 62

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

Assotech Business Cresterra

Assotech

500,000

Sector 135

2015

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 March 2015.

Research & Forecast Report | April 2015 | Colliers International

Primary Authors:

502
67 countries on
6 continents
United States: 140
Canada: 31
Latin America: 24
199
EMEA: 108

Surabhi Arora
Associate Director | Research
+91 124 456 7500
surabhi.arora@colliers.com
Sachin Sharma
Manager | Research
Amit Oberoi I National Director
Valuation & Advisory Services & Research
For Oce Services:
Mumbai: George Mckay I South Asia Director
george.mckay@colliers.com
Delhi / NCR: Vikas Kalia | National Director
vikas.kalia@colliers.com

$2.3

billion in
annual revenue

1.7

billion square feet

under management

16,300

professionals

About Colliers International

colliers.com

2015

Bengaluru: Goutam Chakraborty I Director

goutam.chakraborty@colliers.com
Pune: Rishav Vij I Senior Associate Director
rishav.vij@colliers.com
Chennai: Kaushik Reddy I Director
kaushik.reddy@colliers.com
Kolkata: Swapan Dutta I Senior Associate Director
swapan.dutta@colliers.com
Colliers International
Technopolis Building, 1st Floor,
DLF Golf Course Road,
Sector 54, Gurgaon - 122 002
TEL +91 124 456 7500