In­dia records strong first quar­ter of­fice ab­sorp­tion, says CBRE

IT/ITeS con­tin­ues to lead leas­ing ac­tiv­ity fol­lowed by en­gi­neer­ing & man­u­fac­tur­ing and bank­ing & fi­nance

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - HT Cor­re­spon­dent letters@hin­dus­tan­times.com

CBRE South Asia Pvt. Ltd, In­dia’s lead­ing real es­tate con­sult­ing firm, to­day an­nounced the find­ings of its lat­est In­dia Of­fice Mar­ketView Report – Q1, 2017. Ac­cord­ing to the report, the first quar­ter of 2017 was one of the strong­est quar­ters for the of­fice mar­ket ob­served in re­cent years, with close to 8 mil­lion sq.ft. of of­fice space take-up recorded across key ci­ties in the country. This is an 8% in­crease over Q1, 2016. Leas­ing ac­tiv­ity was led by small to mid-sized deals (<50,000 sq. ft.) ac­count­ing for al­most 90% of all trans­ac­tions in Q1 2017.

Dur­ing the quar­ter, leas­ing ac­tiv­ity was led by the Delhi Na­tional Cap­i­tal Re­gion (NCR) with a share of 19% of to­tal trans­acted space, fol­lowed by Mum­bai (18%) and Ban­ga­lore (18%), ac­count­ing for over al­most 55% of the trans­ac­tion ac­tiv­ity across lead­ing ci­ties. Trans­ac­tion ac­tiv­ity con­tin­ued to be driven by IT/ ITeS cor­po­rates, gar­ner­ing a share of close to 37% of over­all space leased dur­ing the quar­ter. How­ever, the share of other sec­tors such as En­gi­neer­ing & Man­u­fac­tur­ing as well as the BFSI seg­ments, rose marginally, ac­count­ing for 39% in the over­all space leased dur­ing the quar­ter. Ad­di­tion­ally, co-work­ing op­er­a­tors con­tin­ued to re­main ac­tive, leas­ing en­tire re­cently com­pleted de­vel­op­ments in Mum­bai and Ban­ga­lore.

Com­ment­ing on the find­ings of the report, An­shu­man Magazine, Chair­man –In­dia & South East Asia, CBRE said, “The com­mer­cial real es­tate mar­ket in In­dia con­tin­ues to ex­hibit strong per­for­mance. We have be­gun the year on a strong note, with key mar­kets record­ing sig­nif­i­cant of­fice space de­mand. De­spite global un­cer­tain­ties, the var­i­ous pol­icy ini­tia­tives (RERA, GST, In­fra­struc­ture Sta­tus for Af­ford­able Hous­ing) cou­pled with a ro­bust in­fra­struc­ture de­vel­op­ment roadmap, is mak­ing the country an at­trac­tive des­ti­na­tion for cor­po­rates look­ing to start up or ex­pand op­er­a­tions in the country. The emer­gence of smaller ci­ties for cor­po­rate ex­pan­sion is also con­tribut­ing to the over­all growth of the seg-

ment.” Na­tional Cap­i­tal

Re­gion: Gur­gaon con­tin­ued to drive leas­ing ac­tiv­ity. Supply ad­di­tion was lim­ited to Gur­gaon. IT/ITes cor­po­rates dom­i­nated leas­ing ac­tiv­ity with a share of more than35%, fol­lowed by BFSI and re­search, con­sult­ing and an­a­lyt­ics firms mar­ginal rise in ren­tals wit­nessed across SEZ de­vel­op­ments Mum­bai: The city wit­nessed a de­cline in leas­ing ac­tiv­ity dur­ing the quar­ter. Thane and Navi Mum­bai ac­count for more than 45% of to­tal trans­ac­tion ac­tiv­ity

New supply came into Airoli, Gore­gaon, Kurla and And­heri-Ban­ga­lore: 80% of to­tal de­mand wit­nessed from ORR, CBD and NBD . En­gi­neer­ing & Man­u­fac- tur­ing, IT/ITeS and BFSI seg­ments were the main oc­cu­piers of space in the quar­ter

Hy­der­abad: Leas­ing ac­tiv­ity wit­nessed an in­crease on a quar­terly ba­sis. IT Cor­ri­dor and Ex­tended IT Cor­ri­dor dom­i­nated leas­ing ac­tiv­ity

Chen­nai: Low va­cancy levels led to a mar­ginal dip in trans­ac­tion ac­tiv­ity. Ren­tals con­tin­ued to ap­pre­ci­ate across most mi­cro­mar­kets.50% of the trans­ac­tion ac­tiv­ity dur­ing the quar­ter was con­cen­trated on OMR Zones .

Pune: The city wit­nessed a 3 time rise in leas­ing ac­tiv­ity in Q1 2017 on a y-o-y ba­sis with a 14% share. Ren­tal growth of 2 - 4% q-o-q. On the supply front, 19% of the en­tire supply for the quar­ter was recorded in the city

Kolkata: Leas­ing ac­tiv­ity was con­cen­trated in IT de­vel­op­ments in the pe­riph­eral mi­cro­mar­kets. Ren­tals re­mained sta­ble across mi­cro-mar­kets

BFSI com­pa­nies dom­i­nated leas­ing ac­tiv­ity, fol­lowed by do­mes­tic en­gi­neer­ing & man­u­fac­tur­ing and IT/ITeS firms

Kochi: Trans­ac­tion ac­tiv­ity wit­nessed an in­crease on a quar­terly ba­sis. 80% of the leas­ing ac­tiv­ity was con­cen­trated in the SBD .An in­crease in ren­tal val­ues wit­nessed in the CBD. Dur­ing the quar­ter, 3.1 mn sq.ft. of new supply en­tered the key mar­kets. Most of this supply is con­cen­trated in pe­riph­eral lo­ca­tions of lead­ing ci­ties, which is likely to at­tract strong pre-com­mit­ment ac­tiv­ity. Go­ing for­ward, a sig­nif­i­cant quan­tum of space is ex­pected to be re­leased

MINT/FILE

Dur­ing the quar­ter, leas­ing ac­tiv­ity was led by the Delhi Na­tional Cap­i­tal Re­gion with a share of 19% of to­tal trans­acted space

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