India’s office space market absorption increases by 25% in Q1 2018, according to a recent report by CBRE South Asia, a real estate consulting firm. The Supply of office space tripled at 9.7 million sq ft during the said quarter. More than 80% of this new supply was in Bengaluru, Mumbai, Chennai and Delhi-NCR.
An estimated amount of 11 million sq ft of space take-up was recorded in the said quarter.
The highest demand for office space was recorded from Bengaluru, which beats cumulative space from cities like Delhi-NCR, Mumbai & Hyderabad during the first quarter of 2018 (Jan-Mar). India’s office space market will boom in the upcoming years.
As per an article in Economic Times, Mr. Anshuman, chairman (India & SE Asia), CBRE said that India is preferred market as the International & Domestic Occupiers have grown, and it offers flexible offices & quality office spaces at reasonable rents.
Tech corporates led office space take-up during the quarter with a 25% share, while BFSI firms garnered a 24% share. The share of e-commerce firms rose to 15%, thanks to a few large-sized deals by leading global and domestic players.
During the quarter, 45% of all the transactions were for small-sized spaces while mid-sized transactions accounted for a 42% share. There were a few large-sized deals, most of which were recorded in Bangalore, followed by a few in Mumbai, Delhi-NCR, Chennai and Hyderabad. (source: The Economic Times)
This is a great news for all the commercial office space property developers. Bengaluru definitely has no dearth of office spaces, but quality office spaces are the ones who are attracting good clients.