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

Pune part of smart cities’ plan, says MP Anil Shirole
Dec 27, 2014
PUNE: The inclusion of the city in the central government's ambitious smart cities scheme is certain, said Pune's member of Parliament Anil Shirole
B’luru among six global cities selected for smart city project
Dec 27, 2014
San Jose: Bengaluru is joining Barcelona, Chicago, Hamburg, Nice and Songdo in a technological leap
Activists slam BMC nod for highrises on narrower roads, warn of fire hazards
Dec 27, 2014
MUMBAI: BMC will allow 25-storey buildings on plots that can be accessed by two six-metre wide roads to facilitate movement of fire engines
Only 55,000 new house constructions are less than five years old in New Delhi
Dec 27, 2014
NEW DELHI: Over 40% of Delhi's population lives in houses that are 20 to 40 years old
Cidco revises land allotment policy for religious trusts
Dec 27, 2014
MUMBAI: City's planning authority Cidco has revised its land allotment policy guidelines for religious and spiritual trusts
No clear way forward on Centre's Smart City projects: Pannerselvam
Dec 27, 2014
Chennai: chief minister O Pannerselvam today said at least 10 cities in Tamil Nadu were fully eligible to be declared as smart cities
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”

Latest Realty News Of State

Realty Talk's