With an ever exploding population and already starved of open land mass, its not surprising that Delhi is one of the top 10 markets in entire world when it comes to office space rentals. The booming start up culture and space guzzling IT giants are only making things difficult for people looking out for quality commercial office space in Delhi. However, the high rental story is only true for grade A commercial real estate, that too in and around Connaught Place CBD area and a couple of other pockets with extremely high class infrastructure and amenities. The rest of Delhi office space market is still fairly competitive and there is lot of opportunity for business to grow and flourish.
Most of what we see as commercial Office Space in Delhi has been developed by the Delhi development authority (DDA) before 1985, most of all commercial developments there after have been developed in collaboration with builders by DDA or solely done by a private builder in Delhi. All properties by DDA are of a lease hold status however, the option of getting your property to a free hold status is now open for many locations across Delhi. Most businesses prefer leasing in Delhi over buying because of high capital values and almost at par circle rates. Check our posts on buying a commercial property in Delhi and renting office space in Delhi
Conventional Office Space in Delhi:
For leasing/renting purpose businesses have the option to do conventional lease, which is minimum for a 11 month period and can be as long as 9-12 years. Most popular conventional lease type is a 9 year lease (3+3+3) with a 3 year lock in and 12-15% escalation after every 3 years. All conventional leases are duly registered at the local registrars office by paying a stamp duty of 2 -3% depending on the lease term. Usual practice is of sharing the stamp duty amount by both tenant and land lord. If you are looking to lease/buy an office space in Delhi here is an overall office space scenario picture to get you started.
Office Space in Local Shopping Complexes set up by DDA:
These are small commercial hubs created by DDA, typically built up in a land parcel between 1 acre and 5 Acres, to cater to daily needs of local residents of a community. LSC’s offer lockable shops and offices spaces for small and medium business enterprises ranging between 100 sq ft to 2000 sq ft. Office spaces in old LSC buildings are almost 90% space efficient. On the flip side, this is done at the cost of amenities like huge lifts and other circulation areas. Maintenance is paid to the local civic body or the pvt builder and is usually very cheap (usually between Rs 2-7/sq ft). Currently there are a total of around 150 different local shopping complexes set up across the city of Delhi. Some of the known and highly priced LSC’s that are giving good returns to investors include Vasant Kunj C block, GK 2 Masji Moth complex, Aurobindo Place, Ashok Vihar, Malcha Market, Defence Colony. Prices for commercial office space and retail spaces in LSC start from as low as 10000/sq ft to around 50000/sq ft. Rentals for offices spaces vary between Rs 30/sq ft to 150/sq ft depending on location. Buildings in LSC’s are typically a ground + 3/4 storey structures, most buildings don’t offer any lifts/elevators, central air conditioning, power back up. Power back up could be available in some cases depending on how well the building is maintained. These LSC’s work great for businesses that are looking for office space in a legal building with basic infrastructure including I.T, telephony and utilities at reasonable cost and where they can carry out their business with out getting worried about any problem from civic authorities/registration authorities etc. Typical office space occupiers are, boutique retailers, SMEs, Consultancies, courier services, travel agents, Chartered Accountants and Advocates. See our latest commercial office space listings for lease.
Office Space in Shopping/Community Centers set up by DDA:
Community centers are little bigger than LSC and offer scope for bigger range of economic activities for residents and investors. Built on around 10-20 Acres, apart for retail and office spaces, these shopping centers typically also offer space for small landscaped garden, plot for cinema, kiosks for retailers etc. Community centers offer lockable retail shops and offices spaces for small and medium business enterprises ranging between 100 sq ft to 4000 sq ft. Maintenance is paid to the local civic body or the pvt builder and is usually very cheap (usually between Rs 2-7/sq ft). Currently there are a total of around 40 different local shopping complexes set up across the city of Delhi. Some of the known and highly priced shopping centers that are giving good returns to investors include Vasant Vihar, Saket Anupam complex, Green Park uphaar cinema market, Mangalam Place M2K cinema in Rohini, Depending on location the prices for commercial office space and retail spaces in shopping centers start from as low as 10000/sq ft to around 50000/sq ft. Rentals for office space in a community center hover between Rs 30/sq ft to 150/sq ft from location to location. Efficiency of an office space in a DDA community center is around 85-90%. Again, most office space buildings in shopping centers offer 80-90% efficiency but are lacking facilities like elevators/power back up and central air conditioning. Usually an open parking lot run by local civic body is available for office occupiers at fairly competitive rates. Check out our latest commercial office space listings for rent
Office Space in District Centers set up by DDA:
Setting up of district centers in early 70’s was the one of the first big leaps taken by DDA in order to provide quality commercial office space to corporate and retail investors in Delhi who wanted to relatively bigger spaces (for that time) with amenities like high speed elevators, central air conditioning (only a few buildings offer this though) power back up, covered parking etc. District centers offered Delhi businesses with a true destination with an international vibe, that had modern high rise buildings with relatively bigger floor plates and high speed elevators for mobility, retail plazas and courts, sprawling 5 star hotels, water bodies etc. Commercial district centers are usually set up on land parcels in access of 35 Acres and can be as big as 60 Acres in expanse. There are currently 12 District centers, including the central business district of Connaught place, set up in all different zones in Delhi. Some of the most notable district centers that are providing descent rental yields to property owners are are Bhikaji Cama place, Saket, Nehru Place, Rajendra Place, Janakpuri etc. Depending on location the prices for commercial office space and retail spaces in shopping centers start from as low as 10000/sq ft to around 40000/sq ft. Office space rentals in district centers are between Rs 40/sq ft to 250/sq ft. Big office space occupiers in these are banks, government offices, PSU’s other than corporate. District centers are mostly occupied by large govt PSU’s, corporate houses in automobile, life style, logistics, pharma etc.
Office Space on High street locations in Delhi:
Other than specially earmarked LSC/district centers/CBD, there are many road stretches across Delhi which have been notified as commercial streets with a typical FAR of 2.25% and a certain height restriction on built up. These commercially notified buildings usually offer amenities like central air conditioning, power back (not in all cases) high speed elevators and limited parking space on the porch in front. Most of these corridors are along wide roads and metro connected areas. Some of the popular high streets for office space in Delhi include, the Ring road, Bhishma Pitamah road, Dron Marg, Vikas marg, Pusa road. Depending on location the prices for commercial office space and retail spaces in shopping centers start from as low as 15000/sq ft to around 50000/sq ft. Rentals of such locations are heavily swayed by factors like the frontage of the building (branding opportunity), niche, traffic and parking facilities. Usually parking is bit of challenge in such locations, however work great for businesses that need to show a strong brand presence and want to give easy access to its customers. Rents to could vary from 70/sq ft to 200/sq ft. Premise maintenance for a well maintained building is around Rs 10-15/sq ft. Other than the commercially notified streets, office spaces are also available on MIX LAND USE Roads however with some restriction to certain business types. View our latest commercial office space for rent
Office Space in Modern district centers and Independent Buildings:
There are sporadic commercial centers and independent commercial office space buildings throughout Delhi which more less have the same area an layout as a district center however, constructed/developed by private developers and offer great flexibility in terms of amenities and large contiguous floor plates to accommodate bigger space needs. District centers of Jasola, Saket, Netaji Subhash place, Aerocity are some of the few of the commercial centers that have emerged lately. These buildings typically have high floor to ceiling height, large windows panes and a cool industrial feel to them. Some of the notable independent commercial office space buildings in Delhi area Capital court, Capital point, DLF tower in Moti Nagar, Konnectus, DLF Prime Tower, Ambiance Tower, Redfort Capital, Videocon Tower Vasant Square etc. All such premises offer central air conditioning, 24 hour power back up up, covered parking, state of art fire fighting set up, surveillance cameras, wi fi connectivity, high speed elevators and escalators for swift mobility, 24 hour manned security etc. Depending on location the prices for commercial office space and retail spaces in modern commercial buildings start from as low as 13000/sq ft to around 50000/sq ft. Rentals hover between Rs 50/sq ft to 300/sq ft from location to location. Space efficiency in such buildings could be as low as 50% in few cases however a broad average is around 65%. Maintenance charge is typically pegged around 20-25/sq ft for most buildings. Parking charges are between Rs 1500 – Rs 3000/car/month. Typical clientele/tenant profile in modern buildings in Delhi is Banking/Financial institutions, profitable PSU’s, Oil and metal exploration, defensce large corporate houses in Banking/Financial institutions, profitable PSU’s, Oil and metal exploration, defense, big consulting firms that are looking for large floor plates to consolidate their operations as well as need an international work environment.
Office Space in institutional area of Delhi:
There are many institutional zones across Delhi which are Delhi which are proposed in Delhi master plan for government institutions, private socio cultural institutes and these institutions can sublet certain part of their total FSI depending on direction from the custodian of the land (DDA OR L&DO). An institutional area can be as small as around 100 Acres to as big as about 500 Acres having plots sizes ranging from 250 sq yd to as big as 5 Acres with 2.25% FSI. At the moment such institutions can let 25% of their built up space to certain business types (NGO’s, UN bodies, financial institutions, PSU’s). The landlord usually prefers a tenant from similar work field as the institution itself. See DDA sub letting policy .Some of the institutional locations like Chanakyapuri and Qutab Institutional area in Delhi are highly sought after due to lush green and well maintained surroundings, light traffic, excellent work environment and limited availability. Most buildings in institutional areas are fairly well maintained, have provision for limited parking within the premise as well as around the building periphery. Some of the popular institutional locations for office space in Delhi include Vasant Kunj, Khel Gaon, Chanakyapuri, Janakpuri, Qutab Institutional area, Pusa institutional area, Tugalakabad, Lodhi area, Rohini etc. Rentals range between 50/sq ft to 350/sq ft for institutional spaces. One should always check if the landlord has necessary approvals in place from land custodian in order to sub let the offered premise.
Here are some of our listings for institutional office space in Delhi
Industrial Office Spaces in Delhi.
Delhi offers many locations for businesses looking for industrial office spaces and warehousing hubs near expressways, rail links and airports. There are a total of 28 industrial areas which are governed and administered by DSIDC. Most industrial estates in Delhi are now of non polluting nature barring a few in the suburbs towards north Delhi. Typical structures is basement ground, first and second floor with a 2.25% FSI. Some of the most popular industrial areas which offer good office space alternatives in Delhi inculde, Okhla, Naraina, Patpatgunj and Azadpur industrial area.
View the latest industrial spaces for rent in Delhi and NCR
Office Space in Business Centers in Delhi:
Apart from conventional office spaces where most overheads like office set up cost, maintenance of premise, utilities etc are on tenants head, there are many plug n play set ups available through out Delhi which offer businesses with an office space/desk with fully functioning infrastructure including I.T. and telephone services, utilities etc. The business owner/tenant pays a lump sum monthly rent which includes maintenance of the premise too. They just need to walk in and start working. All heads, utilities, internet, telephony, photocopying, meeting rooms etc are charged extra as per usage or a lump sum pre agreed rental for each one of the items. The whole deal looks great on the face of it however, one needs to work
These kind of set ups work best for large companies to open up representative/liaison offices for a few months or a couple of years with minimum initial investment so that they can test waters in at a new location before expanding and moving in to a permanent office space. Most of the known business centers of repute are located at big commercial districts in a modern buildings barring a few exceptions. Business centers are an ideal arrangement for such flexi need clients as the tenant gets an office space in modern professionally managed facility with all kind of amenities.
Regus, Avanta and Vatika are a few big names that provide business center facilities with overall good presence across Delhi and NCR region. In our personal opinion, business centers can be a solution for someones office space needs however they are not necessarily the best and cheapest though. These centers are certainly not the best option for entrepreneurs/new set ups who are low on budget unless of course if they are in a line of business where they need to “show off” their clients with an impressive reception, high quality furniture, big conference and lounge areas etc. The arrangement may seem like a good bargain on the face of it, however one needs to tread very cautiously and see the fine print along the whole deal.
Co Working office space / Incubation centers in Delhi:
Co working as the name suggests is all about working in a collaborative environment. The phenomenon which started in the silicon valley around 5-6 years ago, has disrupted commercial office space markets around the world, Delhi and NCR areas no exception to this. Over the past year alone, over 20 new co working hubs have been established across Delhi and NCR limts taking the total number to well over 100. The concept is quite similar to “business centers” which offer plug n play offices to tenants however what makes a “good” co working office space worthwhile is its collaborative work culture so to speak, where each individual including the landlord/stakeholders are is helping each other out like they say in IT world “open source”.
These centers are usually open plan office spaces with work stations/desks, sofas, lounges all around with minimum obstruction. One can hire a desk/work station or a cabin depending on their need and pay a fixed monthly rent which includes electricity. Other services like internet, tea/coffee, photocopy, telephone are usually over an above the rental/month as per usage. Again, they a very similar kind of revenue stream as “business centers” however, co working hubs like business centers are not necessarily located in some of the most swankiest buildings in town, there fore are able to offer reasonably priced plans that work well for budding entrepreneurs.
Only caution we would advise, set ups like these may not be your thing if you like more reserved work environment. Find out if the place is running out of a legal commercial location. Also, all co working spaces may not have an organic collaborative work culture, so do your research well. Some of the good ones who have garnered a lot of good press and along with some good word of mouth buzz going for them are following:
Social in Hauz Khas and Def col, Stirring minds near Delhi Gate, Greendesk in Nehru Place, Coworkin in Lajpat Nagar. The one we recommend after doing our own little research is 91springboard .
If you are running a co working center and would like us to know about it feel free to drop us a line or add your space details to our website.
Office Space in Delhi and NCR - Key numbers summary
|Markets||Total Inventory||Grade A||Grade B and lower||Average Vacancy||Average Rent Grade A Rs/sq ft/month||Average Rent Grade B and lower Rs/sq ft/month||Average Rent Grade A USD/Per sq ft/Year||Average Rent USD Grade B and lower||Average Annual Returns|
|Modern SBD areas like Jasola, Saket,||9000000||4000000||3000000||35%||110||90||21||17||6-9%|
|Old EBD District Centers like Bhikaji, Rajendra Place||7200000||200000||7000000||15%||175||90||33||17||6-8%|
|Institutional Areas in Delhi||9000000||1000000||5000000||5%||165||100||31||19||6-8%|
|Mixed Use and high street commercial areas in Delhi||15000000||500000||14500000||23%||130||75||24||14||4-9%|
|Peripheral Business Districts of Gurgaon||20000000||8000000||5000000||45%||65||55||12||11||6-12%|
|Industrial office space in Delhi||17000000||1000000||12000000||37%||65||45||12||9||5-12%|
|Peripheral Business Districts of Noida||16000000||5000000||4000000||55%||45||35||9||7||4-13%|
All areas are in sq ft
All numbers are for super area
CBD – Central Business district
EBD – Extended business districts
SBD – Secondary business districts
PBD – Peripheral business districts
Page edited – Oct 2015
Delhi has some of the best office space options for every ones business needs. One just needs to look at the right places, be it from a budget or strategic point view. Other than Delhi, Gurgaon and Noida also have some great options for office space in Delhi NCR. If you are looking for a commercial office space in Delhi and have questions, we would be happy to help. Feel free to connect!