Genpact, India’s biggest BPO company, emerged as the top real estate buyer in the National Capital in the first quarter of 2011, according to a compilation put together by international real estate firm Knight Frank.
Big leases by IT and BPO firms in the beginning of the year propped up the market, which is in the process of stabilizing after a bout of rising vacancies and poor rentals.
From a vacancy rate of around 4% in 2006, the rate had shot up to nearly 27% by 2010 (see chart). However, according to the latest survey, the vacancy rate — an indicator of over-supply — has stabilized in the March quarter.
However, average commercial rental recorded in the first quarter was lower by around 27% in the March quarter compared to the same quarter a year ago, at Rs 47 per square feet per month. The fall was attributed to the dominance of IT companies in the mix during the quarter.
However, the total area leased shot up from 0.85 million square feet in the December quarter to 1.69 million square feet during the March quarter, including nearly 0.7 million square feet leased by Genpact alone.
In all, nearly 85% of the space was leased by IT companies, with IT-BPO firms Capgemini and IBM taking second and third place.
Gurgaon was the most sought after, with 57% of the total share of the capital, followed by Noida (UP) with 42%, leaving only 1% for Delhi proper.
Gurgaon-Faridabad road, Dundahera (both in Gurgaon) and Sector-62 and Sector -135 witnessed high demand.