Demand for corporate real estate space in the top seven Indian cities saw a high annual take up of 38 million sq ft for 2015 — the highest till date — which translates into an annual rise of 18%. This positive demand is indicative of an overall improved economic sentiment among domestic and international corporate, Times of India reported.
It quoted the findings of CBRE’s latest report ‘India Office Market View for Q42015’ to say that absorption of Grade-A office space across key cities in India witnessed a quarterly growth of approximately 26% during the October-December period — translating into more than 12 million sq ft of leased office space.
The annual office demand was led by Bengaluru with 32% share of the total absorption across leading cities during the year, followed by the Delhi National Capital Region (NCR) with 23% share. Suburban and peripheral office districts of major cities attracted steady occupier demand in Q42015.
Prominent micro-markets included Gurgaon in Delhi NCR; Powai, Vikhroli, Kanjurmarg and Thane/Navi Mumbai in Mumbai; the Outer Ring Road (ORR) in Bengaluru; the IT Corridor in Hyderabad; the Old Mahabalipuram Road stretch along Perungudi in Chennai; Viman Nagar in Pune; and Salt Lake Sector V in Kolkata.
Commenting on the findings of the report, Anshuman Magazine, CMD of CBRE South Asia, said, “India is an established outsourcing destination for various multinationals who continue to outsource their operations to major cities in India — a key reason for a sustained spurt in office transaction activity. This, coupled with a steady macro-economic climate and an overall positive market sentiment during the year, encouraged corporate office occupier demand in 2015.”
IT/ITeS firms across the seven leading cities garnered a share of more than 56% of the entire transaction activity reported during the year. Other sectors such as banking/financial services, engineering/manufacturing, e-commerce and research/consulting also saw significant traction, collectively contributing about 29% to the total transacted space in the year.