Pre-com­mit­ment for Com­mer­cial Space in Key Mar­kets on the Rise

The Economic Times - - Companies: Pursuit Of Profit -

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.

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