India
is expected to observe the second highest demand regarding office space among
the top thirty nations in the Asia-Pacific province in 2014, says a recent
analysis by Cushman & Wakefield, an established property consultancy firm.
Among
Indian cities, Bangalore will be experiencing the maximum demand, further says
the report. The Silicon Valley’s imminent status as the nation’s biggest market
is due to the prominent presence of reputed IT/ITES firms as well as
multinational companies. It is estimated that the city would require
approximately 6.3 million sq ft in 2014.
Yet,
with several commercial developers willing for a 2015 launch, more development
is likely to take place towards mid-2014 and 2015. Several awaited launches of
massive office space is likely to happen towards 2015.
Many
firms in other locations are planning to relocate to Bangalore, and local firms
are considering expansion, thereby enhancing the commercial prospects of the
place.
The
global leader in the category of maximum office space demand is Tokyo, Japan
where the statistics stand at 7.6 million sq ft.
Perhaps,
Bangalore could have shown a better figure, but owing to the worldwide economic
slowdown and the consequent impact on the IT sector, the city was pushed
downwards in the list of cities with demand for office space.
Also,
of the total launches in India in last year, very few have been in the
commercial sector, with the rest being residential projects.
Still,
the city is at the top among Indian cities and with about 14 % increase in
office space demand, Bangalore remains the commercial favorite of the nation.
Following Bangalore is Delhi NCR region with market absorption of 3.7 million sq ft.
The city of Mumbai shows a unique picture, with good market absorption rates but significant vacancy levels. Important peripheral markets like Gurgaon in NCR and Mumbai’s Goregaon and Malad have perceived lesser demand but extensive leasing activity by firms.
Together, there has been a demand for nearly 900000 sq ft in these areas. While comparing the previous years, what comes out is that there has been a decline in office space across vital markets in the nation.
More specifically, of the office space of 1.8 million made available in 2013, approximately about 1.2 million was sold off or leased out, amounting to only 20 %.
Slow transactions and preference for a better deal were the causing factors emerged out of the analysis.
Cities like Bangalore, National Capital Region and Hyderabad would be the prime contributors towards filling up the gap in commercial space. The cumulative demand for office space in 2014 would amount to 37 million sq ft.
The study also highpoints that private equity( PE) investments for the 1st three quarters in 2013 improved to about 25 % over the equivalent period in 2012, chiefly due to better revenue from lease deals. However, the overall deals for first three months in 2013 dropped to 21 from 27 pointing at an increased average deal size.
To get more updates please make visit on our
The city of Mumbai shows a unique picture, with good market absorption rates but significant vacancy levels. Important peripheral markets like Gurgaon in NCR and Mumbai’s Goregaon and Malad have perceived lesser demand but extensive leasing activity by firms.
Together, there has been a demand for nearly 900000 sq ft in these areas. While comparing the previous years, what comes out is that there has been a decline in office space across vital markets in the nation.
More specifically, of the office space of 1.8 million made available in 2013, approximately about 1.2 million was sold off or leased out, amounting to only 20 %.
Slow transactions and preference for a better deal were the causing factors emerged out of the analysis.
Cities like Bangalore, National Capital Region and Hyderabad would be the prime contributors towards filling up the gap in commercial space. The cumulative demand for office space in 2014 would amount to 37 million sq ft.
The study also highpoints that private equity( PE) investments for the 1st three quarters in 2013 improved to about 25 % over the equivalent period in 2012, chiefly due to better revenue from lease deals. However, the overall deals for first three months in 2013 dropped to 21 from 27 pointing at an increased average deal size.
To get more updates please make visit on our
| http://rajaaristosbangalore.bravesites.com |
| http://rajaaristosbangalore.blogspot.com |
| http://rajaaristosbangalore.webnode.com |
| http://rajahousingbangalore.weebly.com |
No comments:
Post a Comment