2015

India office markets poised for growth in 2015

7:30 AM

India office markets poised for growth in 2015


According to Colliers International’s India office property market overview April 2015, the Indian economy continued to see positive trends, with Business Confidence Index marginally up by 20 basis points in January 2015. Both the economy and the office market turned the corner in 2014 and are poised for further improvement in 2015.

For the commercial real estate sector, 2015 witnessed a good start, with first quarter office absorption of 8.5 millionsq ft in the eight major metro cities in India, headed by Bengaluru (3.82 million sq ft, including 1.74 million sq ft pre-committed), NCR-Delhi, Gurgaon and Noida (1.48 million sq ft), Mumbai (1.33 million sq ft), Pune (0.89 million sq ft), Chennai (0.81 million sq ft) and Kolkata (0.22million sq ft).

Tenants from IT / ITeS and BFSI were the primary sectors driving this demand. Within IT / ITeS, E-commerce companies took up 52% of the total space absorbed. Select micro markets in cities like Bengaluru and Mumbai witnessed marginal increase in rental values in the range of 1% – 3% QoQ. Both the economy and the office market turned the corner in 2014 and are poised for further improvement in 2015.

According to the report finding expanding economy, improving business sentiment and increasing job creations will keep the momentum in demand for office real estate in 2015.

In response to tenant demand, the strongest markets (namely Bengaluru and Gurgaon) will witness development of new stock. However,developer sentiment towards speculative construction ofoffice buildings is expected to remain cautious, and this in turn will limit the risk of further overbuilding.


Source : DNA

You Might Also Like

0 comments