Indian Commercial Real Estate Saw Robust Growth In Q2 2018, Says Recent Colliers Report

    Date:

    Share post:

    Indian commercial real estate segment has recorded a robust growth in the second quarter of 2018. As per a recent report, office space take-up touched 12.6 million sq ft in this period and the trend is expected to continue over the next three years.

    As per a recent report by Colliers Research, a total of 12.6 million sq. ft of office space was acquired with Bengaluru continuing to be the biggest contributor with 34 percent share of absorption. Bengaluru was followed by National Capital Region (NCR) which has 28 percent share of absorption followed by Mumbai at 14 percent, Hyderabad, Chennai at 8 percent each, Pune at 6 percent, and Kolkata at 2 percent.

    “With the Indian GDP forecasted to grow at above 7% annually over 2018-2022, primarily led by cities such as Bengaluru and Hyderabad, “ Money Control quoted Ritesh Sachdev, Senior Executive Director, Occupier Services at Colliers International India, as saying. “This economic growth should drive demand for Grade A office space and increase institutional investments in premium commercial office assets in the next three years.”

    Similarly, institutional investment in commercial assets also showed an upward trend with investors continuing to buy pre-leased and buildings near completion, as per the report. While Indiabulls fund reportedly bought Trivium, a multi-phase commercial space in Hyderabad, Blackstone LP acquired One Indiabulls Park and Ascendas agreed to buy two towers in the QPark technology park in Navi Mumbai.

    The report further indicated the rise in popularity of co-working spaces with 7% share of leasing in H1 2018. This trend is expected to expand manifold in cities such as Mumbai, Bengaluru, and NCR owing to cost-effectiveness and flexibility, the increasing uncertainty among occupiers regarding their future headcount.

    Talking about the performance of commercial real estate in Delhi-NCR, the maximum absorption was seen in Gurugram with gross office uptake at 2 million sq ft showing a 111 percent year-on-year jump. Maximum space was occupied by tech companies followed by banking, finance and insurance companies.

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Related Posts

    Latest posts

    TCS Rents 400,000 Sq Ft Office Space in Noida

    "Tata Consultancy Services (TCS) has leased 400,000 square feet of office space in Noida due to increased demand....

    Raymond Group Unveils First Mumbai Real Estate Project in Bandra

    "Raymond Group Unveils First Mumbai Real Estate Project in Bandra, Aims to Generate Over $2 Billion" Raymond Realty, the...

    Brigade Group Plans to Expand Office Space by 3 Million Sq Ft

    Brigade Group Plans to Expand Office Space by 3 Million Sq Ft, Aims for Revenue of Rs 380...

    Big Players Oberoi and Raymond Compete in Thane Real Estate Market

    "Big Players like Oberoi Realty and Raymond Realty to Compete in Thane Real Estate Market" In the bustling real...