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Despite the delayed implication of demonetisation and recent layoffs by technology companies due to automation and changing technology, the commercial office market continued to remain resilient, backed by sustained expansion plans of the major occupiers.
The gross office take-up in India amounted to 9.6 million square feet (882,800 square meters) in Q2 2017, representing a nominal 2 per cent increase quarter-on-quarter (Q-o-Q) from 9.3 million sq ft (total office absorption in H1 2017 stands at around 18.9 million sq ft, reveals Colliers Research, which is marginally down by 2 per cent from H1 2016)
“The real estate sector has seen a series of challenging regulatory impediments in its performances, with demonetisation, RERA and now GST. In the post-GST era, service tax (15 per cent) in commercial leases will be replaced with GST at 18 per cent. However, we expect demand to remain steady, with some large activities of consolidations and relocations in Bengaluru, Mumbai, Pune and NCR. Hyderabad witnessed a sharp rise in demand from 0.51 million sq ft to 1.6 million sq ft QoQ, which is more than double. Overall office demand is expected to see a steady rise in take-up for the next few quarters,” said Ravi Ahuja, Executive Director, Office Services & Investment Sales, Colliers International India.
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