End-2014 saw spike in of­fice oc­cu­pa­tion lev­els

To­tal of­fice space take-up in 2014 saw a 10% year-on-year rise

HT Estates - - HTESTATES - An­shu­man Mag­a­zine

En­hanced lev­els of ac­tiv­ity in cor­po­rate real es­tate trans­ac­tions led to a to­tal of­fice space oc­cu­pa­tion of more than 33 mil­lion sq ft dur­ing 2014. This ac­tiv­ity was led for the most part by Bengaluru (37%) and the Na­tional Cap­i­tal Re­gion (NCR) (24%).

To­tal cor­po­rate space oc­cu­pa­tion in the fourth quar­ter of 2014 was more than 9 mil­lion sq ft — the high­est quar­terly lev­els over the past three years. Such trans­ac­tion lev­els echoed the over­all sense of op­ti­mism that pre­vailed in the In­dian com­mer­cial real es­tate mar­ket in 2014.

The de­mand for com­mer­cial of­fice space re­mained sus­tained through­out the year; and year-on-year space take-up in­creased by around 10% over 2013.

The year also saw sig­nif­i­cant in­vestor in­ter­est in com­pleted and well-leased core com­mer­cial as­sets and IT parks.

This will­ing­ness to in­vest in the coun­try — es­pe­cially on the part of multi-na­tional or­gan­i­sa­tions — in­di­cates an in­creased con­fi­dence in the In­dia growth story in gen­eral and the gov­ern­ment in par­tic­u­lar.

Ex­cept for Mum­bai and Hy­der­abad, all lead­ing cities wit­nessed an in­creased de­mand for of­fice space dur­ing 2014 from cor­po­rate oc­cu­piers.

While a ra­tio­nalised sup­ply and in­creased fo­cus on com­mit­ting space in un­der-con­struc­tion projects in Mum­bai led to a drop in trans­ac­tion ac­tiv­ity.

Also, a sub­dued po­lit­i­cal cli­mate in Hy­der­abad dur­ing the first half of 2014 con­trib­uted to a sim­i­lar drop.

Ow­ing to avail­able qual­ity of­fice de­vel­op­ments with larger floor plates, occu-

pier pref­er­ences re­mained fo­cused on the dom­i­nant of­fice dis­tricts of Gur­gaon, T h a n e / N av i M u m b a i , White­field ( Ban­ga­lore), Ma­garpatta (Pune) and the IT Cor­ri­dor in Hy­der­abad, among oth­ers.

Among the lead­ing sect o r s d o m i n at i n g o f f i c e space re­quire­ments dur­ing the year, the IT/ITeS sec­tor con­tin­ued to ac­count for a ma­jor por­tion, fol­lowed by bank­ing/fi­nan­cial ser­vices.

Other prom­i­nent sec­tors in­cluded man­u­fac­tur­ing and en­gi­neer­ing, telecom­mu­ni­ca­tions, con­struc­tion, con­sult­ing and re­search, health­care and phar­ma­ceu­ti­cals.

Ad­di­tion­ally, cities such as Delhi and Ban­ga­lore at­tracted a healthy de­mand from the e-com­merce seg­ment dur­ing the fourth quar­ter.

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