Pre-commitment for Commercial Space in Key Markets on the Rise
Kailash Babar & Sobia Khan
Mumbai | Bengaluru: Pre-commitment levels in key office markets across India have been on the rise, which is an indication of sustained demand and occupiers’ interest in commercial spaces. The pre-leasing activity is gathering pace not only for commercial projects to be completed this year, but scheduled to be completed over the next two years.
Unlike residential properties, commercial projects are bought or leased closer to the project’s completion date and stronger pre-commitments from occupiers is a sign of business uptrend. Among the key markets, Pune has seen the highest pre-commitment levels among Indian office markets. At the end of second quarter, Pune’s pre-commitment activity stood at 48%. Bengaluru has already seen 39% of its total supply coming through 2017 pre-committed, while Mumbai and Delhi-NCR have also recorded pre-commitment levels of 33% and 22%, respectively, showed a JLL India study. In Mumbai and Delhi-NCR, pre-commitment activity is being seen in projects getting completed in 2019 too. Mumbai already has a pre-commitment level of about 17% for projects expected in 2019. “In Mumbai, a wider spectrum of occupiers from BFSI to IT, telecom and healthcare are dri-
ving this trend. Hyderabad too is seeing similar activity, thanks to rising interest from occupiers from IT, consulting, telecom and healthcare sectors,” said Ramesh Nair, CEO & country head, JLL India.