Mumbai to lead office space take-up

Normal 0 false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Mumbai and Delhi NCR are expected toabsorb about 20-22 per cent of the projected demand for office space during 2010-2012, says a report The year 2009 would be marked in Indian realestate as one of the most difficult periods for the industry in recent times.However, despite the turbulence and uncertainty, there are momentousopportunities to learn through the turn. With signs in the global economythat the worst may be behind us, commercial office space in India has begun to consolidate, focusing on affordability, diversificationand delivery, says a report by realty consultant Jones Lang LaSalle Meghraj. The year witnessed a considerablylower net absorption of 19.6 million sq ft against a robust net absorption of33.1 million sq ft in 2008. Quarterly absorption rate wasrecorded at 17 per cent in the fourth quarter of 2009, which has beenincreasing steadily after hitting bottom in the first quarter of 2009. Indian real estate witnessed netabsorption of 8 million sq ft in quarter 4, 2009, nearly four times the lowestwitnessed in quarter 1, 2009. With lower rents in IT as well as non-IT spaces , the opportunistic demand is led by domestic occupiers, whohave expanded their real estate portfolios in various Indian cities. The sunshinesectors ­ telecom, pharmaceuticals, healthcare and manufacturing leased largespaces in various cities. A larger share of transactions happened inoperational vacant stock rather than under-construction projects in 2009,contrary to the trend observed during 2007 and 2008, when options inoperational office space weren't available to the tenants in the same measure. Projected supply and demand of office space Office space amounting to 162.6million sq ft is expected to become operational in the next three years, whichwould increase the pan-India grade-A office stock to 387.4 million sq ft. By end-2010, Mumbai is expected tolead in terms of operational office stock in the country, pushing the leader,Bangalore, to second position. About 85-90 per cent of the nearterm supply of 68.3 million sq ft, which is expected to become operational in2010, is in advanced stages of construction with more than 50 per cent of thestructure completed at end-2009. The pace of supply infusion isexpected to outgrow the demand in the medium, term thus creating a condition ofoversupply across the secondary and suburban micro markets. Net absorption of office space is projected to grow at a compound annual growth rate (CAGR) of 29 per centduring 2009-2012, increasing from 19.6 million sq ft registered in 2009 to 42.2million sq ft in 2012. While Mumbai and NCR Delhi areexpected to absorb about 20-22 per cent of the projected demand during2010-2012, Bangalore and Chennai are expected to absorb about 14-15 per cent ofthe projected demand during the same period. Despite a projected growth of 10 percent for IT/ITES and the BPO sector in India during 2010, demand for realestate space is only expected by end of 2010. During 2011-2012, with better growth projections of IT/ITES sector, demand for office space in these micro markets is likely to increase. Courtesy: HTEstates 27 th Feb 2010 For more information regarding apartment in gurgaon, bedroomapartments, buy property in india, commercial complex in india, commercial realestate, commercial space in gurgaon, dealers, flats for sale, indian realestate investment, investment options in real estate, luxurious flats, malls,office space, office space in gurgaon, online real estate, penthouses gurgaon,plots, property consultants, property in gurgaon, property india, propertyinvestment, real estate company, real estate developer, real estate gurgaon,real estate in india, real estate investment strategies, real estate market,real estate news, real estate portals, realtors, realty, residence, residentialreal estate, sell property, shop, villas, Residential Apartment   Visit www.zameen-zaidad.com          www.propertycafeteria.com  

Was this helpful? 0 0 Comments

You're reading Mumbai to lead office space take-up.