Bengaluru to see highest office space absorption in 2015: Cushman
Bengaluru is expected to have the highest absorption of approximately 11.1 msf, followed by NCR at approximately 6.8 msf of office space absorption
Dec 27, 2014
Source : Business Standard

 

Bengaluru: The country's capital is expected to see the highest absorption among the key cities of India next year, says the latest office report by global consultancy firm Cushman & Wakefield.

The total estimated Grade A office space absorption in India is expected to be approximately 36.8 msf (million square feet) in 2015, while the supply will be approximately 46.4 msf in the same period, it said.

The demand for office space in India would be driven by general growth in corporate activities both from global as well as domestic companies, which are expected to ramp up their operations in view of economic and political stability, C&W said in a release.

It said Bengaluru is expected to have the highest absorption of approximately 11.1 msf, followed by NCR at approximately 6.8 msf of office space absorption.

Sharing details from the report, the release said this will be at significantly improved levels compared to 2013 and 2014 highlighting the impact of improvement in business sentiment, political stability and macro-economic scenario on office market absorptions.

The trend is expected to gather pace in the second half of the New Year continuing its momentum into 2016, it added.

"Further improvement in occupier sentiment is anticipated next year as occupiers pursue growth strategies. Relocations and consolidations will also continue with occupiers increasingly adopting innovative workplace strategies to attain efficiency in operations and costs," said Sanjay Dutt, Executive Managing Director, South Asia, Cushman&Wakefield.

"Rents in suburban and peripheral locations will be largely range-bound next year due to steady infusion of supply but are expected to start firming thereafter as the supply pipeline shrinks," he added.

C&W said key office markets in India will remain largely occupier favourable with most markets remaining marginally to significantly over-supplied for the most of 2015.

Hyderabad will be the only exception where demand will be higher than supply but the general sentiment would still be tilted towards occupiers for most part of 2015, it added.

Stating that the top eight cities are expected to have a robust supply pipeline of nearly 46.4 million square feet for 2015, the release said this supply is likely to favour tenants, presenting them a variety of quality options to choose from and negotiating power in the short term.

Still, it said, the overall vacancy for top eight cities, which is estimated to rise to 19 per cent next year, will likely be contained as demand will be fuelled by companies in IT-ITeS, banking, financial services and insurance sectors (BFSI), pharmaceutical and manufacturing sectors due to an anticipated improvement in India's economic scenario.

Bengaluru will lead with an estimated 11.1 msf of net absorption against a supply pipeline of 14.8 msf, the release added. Bengaluru, NCR, Mumbai, Hyderabad, Pune, Chennai, Ahmedabad, Kolkata are the top eight cities figuring in the list.

Latest Realty News

AP to invite private investments into integrated township projects
Dec 27, 2014
Hyderabad: The Andhra Pradesh government is planning to introduce an Integrated Township Development policy, similar to the one in Gujarat
Sebi bars Ecogreen, directs it to refund money within 3 months
Dec 27, 2014
Mumbai: Market regulator Sebi ordered immediate closure of unauthorised investment schemes run by Ecogreen Realestate India
Buy one get one offer for apartments from Supertech
Dec 27, 2014
New Delhi: Freebies in the real estate sector have reached a new high
Thailand rates hit Visakhapatnam realty
Dec 27, 2014
Visakhapatnam: Many people these days prefer to buy flats in Thailand rather in areas like Madhurawada, which is touted as “New Vizag”
Probe into Madan Mitra’s realty ‘links’
Dec 27, 2014
KOLKATA: A G+10 residential complex in Dum Dum has come under the scanner of both the Enforcement Directorate (ED) and CBI
'Centre mulls online building clearances'
Dec 26, 2014
VISAKHAPATNAM: The central government is planning to introduce the system of online building clearances for the benefit of developers
3 smart cities may ease pressure off Bengaluru
Dec 26, 2014
BENGALURU: The IT capital of India missed its chance to be part of Prime Minister Narendra Modi's 100 smart cities project
Housing, transport key to new CM’s city revamp plan
Dec 26, 2014
MUMBAI: Housing and transport reforms for Mumbaikars and ensuring political stability topped the agenda of the Devendra Fadnavis-led government
Security China eyes Pune for smart city projects
Dec 26, 2014
Pune: Chinese Government Officials visited Pune to explore opportunities to collaborate on the Smart City project
Largest-ever housing scheme, ghost employees keep DDA in news
Dec 26, 2014
NEW DELHI: A largest-ever housing scheme in its history offering over 25,000 flats across categories and a curious case of "ghost employees" on its roster kept DDA in news in 2014

Latest Realty News Of State

Realty Talk's