Q3-2023 witnessed the ebb and flow of Delhi NCR's commercial real estate, with a gross leasing of 3.4 million square feet. While a slight 4% dip from the previous quarter and an 11% drop compared to Q3-2022 made headlines, the overall trend suggests sustained demand, keeping the region on a steady trajectory.

Fresh leases stole the spotlight, commanding a robust 59% share in the quarterly leasing activity. But the surprises didn't stop there. Pre-commitments took center stage, constituting 33% of the leasing landscape, overshadowing term renewals at a mere 8%. In this real estate performance, the IT-BPM sector reclaimed its throne, contributing a whopping 39% to the Gross Leasing Volume (GLV). The E&M and professional services sectors were no slouches, each chipping in with a solid 14%.

Gurugram emerged as the leasing juggernaut, boasting a 74% share, fueled by vibrant submarkets like Cyber City, NH8 - Prime, and Golf Course Road Extension. Noida held its ground with a 24% contribution, led by prominent submarkets Noida Expressway and Noida City 2. Despite a 9% dip from Q2-23, the net absorption in Delhi NCR stood at 1.21 million square feet for the quarter, with a YTD figure reaching 3.78 million square feet by Q3 23.

Vacancy rates took a thrilling dive, shrinking by 66 basis points to 23.9% in Q3. This marked a significant 2.7% drop from the same period last year. The hero behind the curtain? Consistent leasing momentum, especially in submarkets like Golf Course Extension, Cyber City, and NH8 Prime in Gurugram. These areas displayed lower vacancy, steady demand, and an exciting upcoming supply of 15.5 million square feet until 2025. Dominant submarkets, including Cyber City, NH8 Prime, and Golf Course Extension Road in Gurugram, take the lead with a combined 50% share, followed by Noida Expressway at 22% and Delhi Aerocity at 11%. Brace for a slight upward shift in vacancy levels with this influx of new supply in the upcoming quarters.

And the plot thickens – rental rates across the city witnessed a modest 1.2% uptick in Q3, fueled by a surge in leasing activity. Micro markets like Golf Course Road Extension, NH8 - Prime in Gurugram, and Noida Expressway might see rents rise further, courtesy of quality projects gearing up for completion in the quarters ahead. As we navigate this dynamic real estate narrative,  the stage is set for Delhi NCR’s commercial real estate to captivate investors and readers alike, promising an engaging saga of growth and prosperity.