Google plans exponential expansion in Gurgaon
GURGAON: Google has expanded its office operations in Gurgaon by 4,02,860 square feet over the last quarter and is expected to almost double its space absorption in the city by 2017.
It has been learnt that they plan to expand their offices to 7,50,000 square feet by 2017. This massive space absorption by the world’s No. 1 search engine has now put Gurgaon as the top most office space absorption destination of the country over the last quarter of 2015. This data has been shared exclusively with the TOI by Colliers International, India.
This trend spells good news for future job-seekers in NCR, especially for those in Gurgaon. According to Colliers, Gurgaon office space demand is on and upswing and the trend is expected to persist over next two years. The city has seen a 2.1 million square feet office absorption this quarter, totaling to 4.9 million square feet on a year-to-date basis. At a quarterly rate there has been a whopping 18% increase in office absorption.
The shoot-up has been largely because of Google India’s expansion in Signature Towers 2A and 3 by 402, 860 square feet on lease.
Samsung has taken up 2,00,000 square feet at Two Horizon Centre on Golf Course Road. American Express has secured 1,25,000 square feet at One Horizon Centre on Golf Course Road; Spice Jet took up an individual plot of 1,20,000 at Udyog Vihar on lease and Olympus Medical Systems took up the SAS Tower of 80,000 square feet area at Medicity, NH8 on lease as well.
Some projects that are under construction in the city are the Business Club at 7,00,000 square feet by AIPL group that is expected to be complete by 2017; Parswanath IT Park Technicia by Parsvanath Developers of 6,95,000 square feet to be delivered by 2016; Unitech Infospace by Unitech Ltd at 4,50,000 at Dundahera also to be complete by 2016.
According to the report, IT and ITeS sectors remained the key occupiers this quarter with 60% office space, followed by BFSI at 20%, manufacturing at 10% and others at 10%. National Highway 8 remained the most preferred micro market sharing about 29% of total office absorption followed by Golf Course road 25% and Udyog Bihar at 21%.
“We anticipate that the demand momentum in Gurgaon will continue from sectors like IT and ITeS, BFSI and Manufacturing. Due to location advantages and affordable rates, micro markets like Udyog Vihar, Institutional Sectors and NF8 will continue to garner the occupier’s interest. Despite increased demand, rents are expected to remain in the same levels across micro markets barring few grade A buildings which will continue to demand premium,” associate director, research, Colliers International — India, Surabhi Arora, said.
In comparison to Gurgaon, Noida market has seen a recovery with 0.98 million square feet increase in absorption over last year which is 32% increase over last quarter. With this, the city recorded a total space absorption of 2.22 million square feet on a year to date basis.
The topmost space absorption in the area was made by Vivo Mobile in the World Trade Centre at 3,00,000 square feet, Greater Noida, followed by 2,00,000 square feet by Cognizant in Infospace 2, Sector 135; and Genpact at Stellar IT Park at 1,00,000 square feet.