Real Estate

11.4 million sq ft of office space absorbed in Q1

Anil Urs Bengaluru May 11 | Updated on May 11, 2018 Published on May 11, 2018

2018 has seen 23 per cent increase in office space demand   -  BusinessLine

The first-quarter of 2018 witnessed a remarkable 23 per cent year on year (YoY) increase in office space demand, with 11.4 million square feet of pan Indian absorption recorded.

With the intensifying office demand, the rental values have also increased in a few active micromarkets across India in Q1 2018, in comparison to the rents in the same period last year.

As per Colliers Research, among the top-ten micromarkets that witnessed maximum YoY rental increase, six of these micromarkets were recorded to be in Bengaluru, with YoY increase ranging from 11 per cent to 26 per cent.

However, other micromarkets from Kolkata, Delhi-NCR and Hyderabad also contributed to uptake. Limited availability of Grade A office space in preferred micromarkets, primarily led to the rental rise in select micromarkets in Delhi NCR, Kolkata and Hyderabad.

“The commercial real estate market is likely to remain robust with increased investor activity, sustained demand from technology companies and growing interest from various industry occupiers like manufacturing, flexible workspace, logistics and warehousing. The demand will be well supported by Grade A new office supply of about 117.0 million sq ft, which is scheduled for completion over 2018-2020,” explained Ritesh Sachdev, Senior Executive Director, Occupier Services at Colliers International India.

Published on May 11, 2018

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