Com­mer­cial real es­tate look­ing up

HT Estates - - FRONT PAGE - HT Es­tates Cor­re­spon­dent

De­mand for cor­po­rate of­fice space in In­dia’s lead­ing cities fir med up in the sec­ond quar­ter of 2015, while mar­ket sen­ti­ments im­proved to a large ex­tent. More than 8 mil­lion sq ft of com­mer­cial of­fice space was taken up across the seven lead­ing cities, trans­lat­ing to a quar­ter-on-quar­ter (q-o-q) in­crease of around 70%, ac­cord­ing to CBRE’s In­dia Of­fice Mar­ket View for Q2 2015.

This por­tends well for the residential mar­ket. “Go­ing for­ward if the com­mer­cial mar­ket con­tin­ues to per­form, this will have a pos­i­tive im­pact on the residential mar­ket as well,” says An­shu­man Mag­a­zine, chair­man and man­ag­ing di­rec­tor of CBRE, South Asia Pvt Ltd.

Ben­galuru re­mained the top cor­po­rate of­fice des­ti­na­tion in the coun­try, with nearly 35% of this to­tal ab­sorp­tion fig­ure be­ing gen­er­ated in the city, where leas­ing re­mained up­beat in com­pleted as well as un­der-con­struc­tion projects.

Of­fice space de­mand in the NCR, Mum­bai and Chen­nai also re­mained up­beat with sev­eral large-sized trans­ac­tion clo­sures be­ing re­ported dur­ing the pe­riod in IT and SEZ de­vel­op­ments. Al­most 53% of to­tal of­fice space trans­ac­tions in Q2 2015 was con­trib­uted by these three cities, each wit­ness­ing a healthy take-up of more than a mil­lion square feet of cor­po­rate real es­tate.

The quar­ter noted strong rental growth (5–6%) in Ban­ga­lore’s Cen­tral Busi­ness Dis­trict (CBD), while rentals re­mained sta­ble in the prime of­fice dis­tricts of most cities.

More­over, sus­tained oc­cu­pier in­ter­est in IT/IT spe­cial eco­nomic zone (SEZ) projects in Gur­gaon and Noida (NCR); Malad/ Gore­gaon ( Mum­bai); North Ben­galuru and ORR (Ben­galuru), re­sulted in a quar­ter-on-quar­ter rental ap­pre­ci­a­tion of 3–6% in each of these mi­cro-mar­kets.

“Fol­low­ing a sub­dued first quar­ter, the sec­ond quar­ter wit­nessed a rise in of­fice space ab­sorp­tion,” adds Mag­a­zine.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.