The rentals of information technology (IT) and special economic zone (SEZ) office spaces in Gurgaon and Noida near New Delhi witnessed a correction in April-June with rental values declining 3% and 13%, respectively. The anticipated supply and deferred expansion plans of companies resulted in a decline in rents, according to a study by real estate consultant Cushman and Wakefield.

The quarter witnessed a total supply of 4.3 million sq. ft. in the National Capital Region (NCR), of which 60% was IT specific. The supply was spread across micro-markets with majority of it in Noida (54%) followed by Gurgaon (38%) and Delhi (8%). The average vacancy rate across the NCR was 7%. Noida witnessed the highest vacancy rate of 15%. The office market otherwise is expected to remain firm with rental values rising in the region except for the IT and SEZ segment of Gurgaon and Noida. These locations are likely to witness an estimated supply of 3.3 million sq. ft.