The net absorption of office space fell by 25 per cent at 23 million sq ft during this calendar year in the country's top eight cities as corporates were cautious about expansion considering weak economic conditions.
According to property consultant JLL, the vacancy in office spaces is expected to be around 13%.
Indian real estate market remained buoyant in January-June this year, with housing sales hitting an 11-year high at 1.73 lakh units and office demand at a record 34.7 million square feet across eight major cities, according to Knight Frank. On an annual basis, housing sales rose 11 per cent to 173,241 units while leasing of office space grew 33 per cent to 34.7 million square feet during January-June this year across eight major cities. Shishir Baijal, chairman and managing director, Knight Frank India, said, "India's real estate market has been buoyant in the last few quarters owing to the strong economic fundamentals and stable socio-political conditions."
In a base case, the consultant said that sales could drop 25 per cent to 1.96 lakh units this year from 2.61 lakh units in 2019 across seven major cities -- Delhi-NCR, Mumbai Metropolitan Region, Kolkata, Chennai, Bengaluru, Pune and Hyderabad.
Renting an office space in prime locations in major cities, such as London or Hong Kong, isn't cheap.
Flush with funds, quick commerce unicorn Zepto is planning to relocate from Powai in Mumbai to a larger office space in Bengaluru's Sarjapur to accommodate its imminent new hires. While the company will maintain an office in Mumbai, its primary operations will shift to the new space in Bengaluru. A spokesperson for Zepto confirmed the development
Demand for Grade A office space is rising across the country.
The CBRE forecast for the next few quarters remains bleak, indicating a negative impact on the rental value.
Real estate developers like Indiabulls, DLF, Peninsula and even retail giant Future group are all considering converting space reserved for malls and hyper-markets to office space to meet heavy demand from financial institutions, investment banks and large companies.
Asia-Pacific economies continue to outpace other regions of the world, whose growth prospects have weakened over the first half of 2013.
This is the latest in a series of large office space buyouts by RMZ Corp which has created a portfolio of rent-yielding commercial assets in India.
Mumbai will lead the Indian office space supply with more than 25 per cent share, followed by Bangalore and Delhi with 19 and 17 per cent, respectively, in 2011-2012, a real estate services firm said.
The Andheri-Goregaon business district, in Mumbai's western suburbs, has beaten some of the city's established business hubs, such as Nariman Point, Bandra-Kurla Complex and Lower Parel-Worli, in absorption of office space.
JLL had shortlisted over 10 developers and Embassy was selected after a long due and rigorous process of due diligence.
The office, spread over 52,775 square feet carpet area, in Mumbai's suburban financial centre Bandra Kurla Complex, is on the fourth floor of the building 'Jet Airways Godrej BKC'.
'The overall market cycle is very positive.'
Global realty consultancy firm CB Richard Ellis on Wednesday said that office segment has shown an uptrend in the recent past and the level of activity is likely to continue in 2010.
Latest CBRE data show Mumbai and the National Capital Region together have just 13 per cent more office space than Bengaluru.
Residential real estate saw a significant fall in supply in the quarter ended June, while office space recorded a steep decline in demand, as well as supply, in the first half of the year, according to reports by international consulting firms.
International commercial property markets have reacted to the increased uncertainty in the global economy in late 2011 and early 2012 with varying degrees of resilience.
The slowdown in the information technology sector has resulted in reduced demand for office space in India in the second quarter of the current financial year, says a report by global real estate consultancy CB Richard Ellis.
Owing to a mismatch between demand and supply of office space, rentals in the Bangalore's central business district (CBD) have peaked to Rs 90 per sq ft a month.
Supply of space for corporate offices likely to cross 100 million sq ft by 2006.
According to Knight Frank Research, 1.07 million sq ft of office space was transacted in Q4 FY13, thus showing a fall of 11 per cent compared to the same quarter last year.
However, the gap between demand and supply also grew wider during the quarter with supply outstripping demand by over 50 per cent and increasing the average vacancy across major cities in India to over 13-18 per cent, according to real estate consultancy Cushman and Wakefield.
By the year-end, Mumbai and its suburbs will add 15.4 million square feet of office space, more than the commercial space now available at the sprawling Bandra Kurla Complex or seven times the office space at Nariman Point, the city's business hub.
The Aam Aadmi Party has told the Supreme Court that it has not 'encroached' the land of the Delhi high court at Rouse Avenue in New Delhi and that the space was allotted to it in 2015.
India will add up to 40 million sq ft of office space this year, which will be higher than many other advanced countries, but lesser than China.
The outperformance of Hyderabad market was essentially due to the substantial increase in pre-committed absorption during this period, while the average deal size here till date increased 28 per cent at 18,400 sft, Cushman mentioned in the report.
The sold property, which was originally built as the company's corporate office, has gone to a wealthy individual. The entire money is expected to be received by June, an informed source said. The realtor had been negotiating the office property's sale for a few months and had finally closed the deal, the source said. A company spokesperson declined to comment.
Let's take a look at some of the most expensive prime office occupancy rates around the world.
Office space leasing in the Delhi-NCR region jumped more than three-fold to nearly 1.5 million sq ft during the January-March period, mainly due to higher absorption by IT firms in Gurgaon.
While praising the internship scheme announced in the Budget, India Inc wants clarity on how it will be implemented. The scheme is expected to help companies address the skill gap in employment. Dheeraj Hinduja, chairman, auto major Ashok Leyland, said: "We had started an internship programme at our plant in Pantnagar, which we established in 2010 with colleges there.
The net leasing of Grade-A commercial office space in India will stagnate this financial year at 32-34 million square feet, with global uncertainties brewing caution among key tenant categories, according to the latest Crisil Ratings report. Major seven cities in India - Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai Metropolitan Region (MMR), National Capital Region (NCR) and Pune - had Grade-A office space with an operational stock of around 705 million square feet as of March 2023. India's commercial office space is dominated by technology companies, with information technology (IT) and IT-enabled services (ITeS) companies occupying 42-45 per cent of the operational stock.
Call Me Bae is a spirited new addition in guilty pleasures for the fashion-loving, rom-com starved soul, applauds Sukanya Verma.
The Bangalore-based company, which already holds in excess of 11.8 million square feet of office space, has informed the US Securities and Exchange Commission that it will take seven properties on lease and develop one on its own.
The lower yield is better for property landlords as it indicates an appreciation in the capital value of the property, says Raghavendra Kamath.
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