‘Of­fices in mi­cro mar­kets see high­est rental growth’

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Ravi Ahuja ht­spe­cial­pro­jects@htlive.com n The au­thor is ex­ec­u­tive direc­tor — Of­fice Ser­vices & In­vest­ment Sales, Col­liers In­ter­na­tional In­dia

As the of­fice de­mand con­tin­ued to in­ten­sify in Q2 2017, an up­ward pres­sure on rental val­ues was ob­served in a few mi­cro­mar­kets across In­dia. A high rental growth was seen mostly in South cities like Ben­galuru, Chennai and Hyderabad where y-o-y change ranged be­tween 8-17% at some lo­ca­tions. In H1 2017, Ben­galuru and Hyderabad both wit­nessed sin­gle digit va­cancy lev­els hov­er­ing be­tween 8-9% due to a dearth of qual­ity Grade A stock thus lead­ing to in­creased rental val­ues in some mi­cro­mar­kets. In 2016, a few Pune mi­cro­mar­kets wit­nessed a y-o-y rental growth of up to 19%. Al­though the sup­ply woes con­tinue across Pune mi­cro­mar­kets, rental val­ues have sta­bilised in Q2 2017, af­ter a con­sid­er­able in­crease in 2016. Ac­cord­ing to Col­liers Re­search, the top 10 of­fice mi­cro­mar­kets that wit­nessed the high­est rental growth in 2017 are as fol­lows:

1.BEN­GALURU – CBD

Ben­galuru CBD mi­cro­mar­ket has al­ways been the first pref­er­ence of BFSI and IT oc­cu­piers pri­mar­ily due to its con­nec­tiv­ity and prime lo­ca­tion. In spite of hav­ing lim­ited avail­abil­ity of of­fice spa­ces and sup­ply, the mi­cro­mar­ket has wit­nessed 17% y-o-y rental ap­pre­ci­a­tion.

2.CHENNAI – OFF CBD

Chennai of­fice CBD mi­cro­mar­kets which is pre­dom­i­nantly an IT mar­ket has ob­served 13% y-o-y rental growth. Apart from IT and BFSI, con­sult­ing com­pa­nies have their setup in Guindy, MRC Na­gar and Saligra­mam. In Q2 2017, Chennai Of­fice CBD mi­cro­mar­ket ac­counted for 16% of to­tal ab­sorp­tion.

3.GU­RU­GRAM – DLF CY­BER CITY (IT)

DLF Cy­ber City is an iconic and land­mark com­mer­cial hub in Gu­ru­gram and is the top pref­er­ence of do­mes­tic and in­ter­na­tional oc­cu­piers. Due to su­pe­rior in­fra­struc­ture and qual­ity of­fice spa­ces, DLF Cy­ber City has wit­nessed 12% y-o-y rental growth. The mi­cro­mar­ket holds 9% share in the to­tal of­fice space ab­sorp­tion in Q2 2017.

4.Pune – Hadap­sar/Fur­sungi

Hadap­sar mar­ket is emerg­ing due to some no­ti­fy­ing projects such as Ma­garpatta city and other projects of­fer­ing large floor spa­ces. This mi­cro­mar­ket is pre­dom­i­nantly an IT/ITeS mar­ket with res­i­den­tial lo­cal­i­ties in the nearby catch­ment area. Hadap­sar mar­ket has ob­served 10.2% y-o-y rental growth.

5.PUNE – KHARADI

Kharadi is one of the fastest grow­ing com­mer­cial mi­cro­mar­ket and is ris­ing as an IT hub. In the past few years, Kharadi has seen good projects like EON IT Park which is one of the largest IT Park in Pune. It will also wit­ness sig­nif­i­cant amount of of­fice spa­ces in the next 3 years. Rents in this mi­cro­mar­ket have in­creased 10.1% y-o-y.

6.BEN­GALURU – EPIP/ WHITEFIELD

The com­mer­cial mi­cro­mar­ket in EPIP/Whitefield has am­ple avail­abil­ity of large floor spa­ces and Grade A de­vel­op­ments are at­tract­ing oc­cu­piers to con­sol­i­date their op­er­a­tions in this mi­cro­mar­ket. The mi­cro­mar­ket in the eastern Ben­galuru has wit­nessed rental growth of 10% y-o-y.

7.HYDERABAD – SBD

The SBD mar­ket in Hyderabad has prom­i­nent lo­ca­tions such as HiTECH City, Mad­ha­pur, Gachi­bowli and fi­nan­cial district. In Q2 2017, 89% of to­tal leas­ing vol­ume was con­cen- trated in SBD due to su­pe­rior ameni­ties and rea­son­able rentals com­pared to other cities. Rents in SBD grew by 10% y-o-y.

8.BEN­GALURU – ELEC­TRONIC CITY

One of the pre­ferred mi­cro­mar­kets in Ben­galuru with com­par­a­tively cheaper rents than other mar­kets of the city of­fer­ing large floor spa­ces and su­pe­rior qual­ity of­fice spa­ces which grew by an av­er­age of 9% y-o-y.

9 CHENNAI OMR POST TOLL

In­creas­ing pop­u­lar­ity of OMR Post Toll mi­cro­mar­ket has shifted oc­cu­piers fo­cus to this mar­ket and wit­nessed gross leas­ing of 33% of to­tal ab­sorp­tion in Q2 2017. This mi­cro­mar­ket in­cludes lo­ca­tions like Navalur, Sholin­ganal­lur and Pallavaram-Tho­raipakkam Road which is pop­u­larly known as IT cor­ri­dor of Chennai and has ob­served 8% y-o-y rental growth.

10 BEN­GALURU HOSUR ROAD

Hosur road is an emerg­ing IT/ ITeS mi­cro­mar­ket in Ben­galuru with cheaper rates mainly due to its lo­ca­tion. This mi­cro­mar­ket is lo­cated in the pe­riph­eral area of the city and has the po­ten­tial to de­velop large projects due to am­ple land avail­abil­ity. Hosur Road mar­ket has wit­nessed 8% y-o-y av­er­age rental growth.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.