NCR leads in corporate realty domain
Takes up 31% of total transacted space in the leading cities, followed by Mumbai
Approximately 5 million sq ft of prime office space was absorbed during the first quarter of this year - a drop of approximately 26% year-onyear, according to CBRE’s India Office MarketView – Q1, 2016 report.
Following a particularly strong fourth quarter of 2015, the first quarter of 2016 was comparatively sluggish as most corporate space occupiers were still strategising their real estate plans for the year, with limited transaction decisions being implemented in the first quarter.
According to the report, corporate real estate space take-up during the quarter was led by Delhi National Capital Region (NCR) with a share of 31% of total transacted space in the l eading cities, followed by Mumbai (23%) and Bengaluru (17%).
Corporate occupier interest remained concentrated towards prominent micro-markets such as Gurgaon i n Delhi NCR; Thane, Navi Mumbai, Vikhroli, Goregaon and Andheri i n Mumbai; Koramangla, Whitefield and Electronic City in Bengaluru; IT Corridor in Hyderabad; and Viman Nagar in Pune. Occupiers were also seen pre-committing space in under- construction developments, primarily in Mumbai and Gurgaon, largely led by the lack of available space in investment-grade developments at prime locations.
Commenting on the findings of the report, Anshuman Magazine, chairman and managing director of CBRE, South Asia Pvt. Ltd. says, “While the first quarter of the year traditionally witnesses muted transaction activity, the overall sentiment among India’s corporate space occupiers is optimistic. Besides, India continues to remain one of the global key outsourcing destinations which will improve the momentum going forward.”
Almost 47% of the leasing activity in the quarter was concentrated in IT developments. Leading SEZ properties i n Chennai, Bengaluru, Gurgaon and Noida also witnessed considerable traction, accounting for about 14% of total transaction activity.
Most SEZ transactions were the culmination of pre-commitments made by corporate occupiers in previous quarters for their office requirements.
In terms of supply, approximately 7 million sq ft of new office space was completed in the quarter. Rajeev Talwar has taken over as the chairman of the National Real Estate Development Council (Naredco). Talwar has diversified experience of over 35 years, both as a bureaucrat as well as in a leadership role in the private sector. Presently, he is a member of the board of directors and CEO of DLF Limited. Welcoming his appointment, Parveen Jain, president, Naredco, said, “Talwar’s vast experience will help Naredco play a crucial role in the growth and development of real estate in the country. His professional acumen would help the sector and the government to achieve common goals, especially the government’s vision of Housing for All by 2022.”