According to a recent research made on the
corporate real estate, Bengaluru seemed to lead the demand for corporate
real estate spaces among the top seven cities in India in the year 2015. The
report stated that, the demand for ‘Grade A’ office space among top seven
cities in the country rose up to 18%, which touched an all-time high demand of
38 million square feet in 2015.
But what has to be noted is that, out of
38 million square feet, Bengaluru led the race with the share of 32% (12.2
million square feet) driven by the demand from traditional IT and new ecommerce
companies. Even in 2014, 33 million square feet was the total office space absorption
in which 34.2% was contributed only by Bengaluru.
India –
Established Outsourcing Destination
Anshuman Magazine, the managing director
of CBRE (Real Estate Services Firm) said in an interview that, India has been a
favourite outsourcing destination for many multinationals who wish to outsource
their operations to major cities in India, and this has been a main reason for
the sustained spurt in office transaction activity. This combined with the
positive market sentiment and macro-economic climate, has encouraged office
space occupier demand in the year 2015.
Areas in High
Demand in Bengaluru
The micro markets of Bengaluru which saw a
major increase in office absorption include Electronic City, Whitefield,
Jayanagar, JP Nagar and Sarjapur Outer Ring Road (ORR) stretch. In Electronic
City and Whitefield, the transactions were mainly driven by IT/ITes companies
for small and large sized office spaces, but in ORR region, the demand was
mainly because of ecommerce companies.
Rental
Appreciation on Quarterly Basis
The report also said that, the Outer Ring
Road (ORR) region witnessed the completion of three prominent Special Economic
Zones (SEZ) and commercial investment grade projects. Also, the sustained
demand from occupiers and limited availability of quality spaces resulted in
the rental appreciation of about 1-2% on a quarterly basis across both SEZ and
IT segments.
Looking at the reports, Ram Chandnani, the
managing director of transaction services at CBRE South Asia said that, the
corporate occupier demand for office spaces seems to continue its
growth in the coming months also. According to him, the consolidation and
expansion strategies of corporate agencies will continue to be in the
Greenfield projects whereas the pre-committed space will be in
under-construction projects, and it seems to be true if we go with the
statistics.
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