Colliers International study revealed that the beginning of 2015 turned up lucky year in the commercial realty sector as it has touched around 8.5 million sq.ft by office space in the eight major metro cities.
Bengaluru leased out around 3.82 million sq.ft, plus 1.74 million sq.ft were the parts of pre-commitment. Delhi/NCR region under which consists of Gurgaon and Noida sold out 1.48 million sq.ft whereas, Mumbai reached at 1.33 million sq.ft, Pune at 0.89 million sq.ft, Chennai at 0.81 million sq.ft and Kolkata at 0.22 million sq.ft.
In comparison of the previous quarter commercial space consumption raised by 2.8%, according to the report. The main reasons behind shooting up of demand for commercial spaces are IT/ITes & BFSI and within IT/ITes, e-commerce firms allotted 52%of the total space booked.
Some selected small markets in the regions like Mumbai and Bengaluru has seen slight hike in the rental values in the range of 1-3% QoQ.
Bengaluru commercial market comes under “Hot Cup Cakes” category in terms of demand-supply rules as there around 2 million sq.ft of office buildings that will be completed by coming quarter out of 0.2 million is already completed. Despite this sluggish development and greater interest of foreign investors in the commercial market depicts more demand and hike in rental, said Vikas Kalia, national director, office services at colliers international.
Kalia said, Gurgaon is getting several foot falls for the absorption of office space which further indicates the growth of this region.
Here sector 32 & 34 will be remaining in the list of first choice for the office space because of its excellent location and affordable rental. Some posh markets of this region like Cyber City, NH-8, Sohna Road and Golf Course have seen the hike in rentals, due to increasing demands by each new day for these locations.
Kalia also stated that the absorption has seen fabulous hike especially in SEZ (special economic zone) as lots of commitment have already concluded and rests are expected to be completed by next quarters.
This report depicts that the day-by-day increasing demands by investors will develop new stock in micro markets like Bengaluru and Gurgaon.
However, builders’ feelings towards tentative construction of office buildings are thought to be alerted which further indicates limit the risk of future overbuilding, said Kalia.
