Ben­galuru to lead in of­fice space use

HT Estates - - HTESTATES - HT Es­tates Cor­re­spon­dent

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.

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