The first quarter of 2018 has witnessed a 23% year-on-year increase in office space demand, with pan-India absorption recorded at 11.4 million sq ft of, ET Realty reported.
With the intensifying office demand, the rental values have also increased in several active micro-markets across India.
Of the top 10 micro-markets that witnessed highest on-year growth in rentals, six were recorded to be in Bengaluru with 11-26% rise, analysis published by Colliers International said.
Limited availability of Grade A office space in preferred micro-markets has primarily led to the rental rise in select micro-markets of Delhi NCR, Kolkata and Hyderabad as well.
“The commercial real estate market is likely to remain robust with increased investor activity, sustained demand from technology companies and growing interest from various industry occupiers like manufacturing, flexible workspace, logistics and warehousing,” said Ritesh Sachdev, senior executive director, Occupier Services at Colliers International India.
He said the demand will be well supported by Grade A new office supply of about 117.0 million sq ft, which is scheduled for completion over 2018-2020.
Bengaluru’s Bannerghatta Road topped the list with 26% on-year rise in rentals, Central Business District followed with 25% growth, while Electronic City and Secondary Business District including Indiranagar and Koramangala saw rentals appreciating 17.6% and 14.3%, respectively.