Bengaluru to lead in office space use
Outer Ring Road (ORR) in Bengaluru is likely to emerge as the top office location expected to witness the highest absorption of office space in the next five years, a report by real estate consultant Cushman and Wakefield in association with Global Real Estate Institute (GRI) has revealed.
In what is seen as good news f or t he commercial realty market, Grade A office stock in Delhi-NCR will cross the 100 million square feet (msf) mark by 2016 following Bengaluru that achieved the milestone i n 2015. About 158 msf is estimated during 2015- 19 across the top eight Indian cities. This year (2015) is expected to record 29.5 msf office space net absorption in top eight cities, witnessing a marginal demand of 4% over the previous year. However, average absorption l evels during 2015- 19 are expected at 31.6 msf, which will be higher t han t he avera g e noted in the last five years on account of strengthening business confidence and steady economic growth.
Beng al ur u i s l i kely t o see highest share of 27% amounting to 43 msf in cumulative absorption ( 2015- 19) with the IT- ITeS sector driving demand followed by Delhi- NCR contributing 17% of the total cumulative absorption duri ng 2015- 19. Interestingly, Mumbai is likely to see 17 msf of absorption during the period.