The year 2016 has already witnessed a high demand in commercial spaces across major cities. E-commerce joints, IT segments, banking and financial sector are the main drivers in this segment. According to experts, domestic and global firms see India as the top market to expand their business. Globally positioning India as an investment destination and improving international ties by PM-Narendra Modi, India has attracted high FDI investments and more countries are ready to do commerce with India. Also, ‘Housing for All’ fuels commercial realty in India.
India’s office space absorption increased tremendously in 2015, as compared to the year 2011. Good days are returning for office real estate and commercial leasing and tenants will remain in an expansionary mode. The demand for all space on the same floor is rising by the occupiers and they are on the lookout for larger spaces. In continuity developers are constructing bigger floor plans to meet their demands.
Small office spaces have also seen a rise as many start-ups are coming up in cities like Bengaluru, Pune and Mumbai. Players in other sectors like manufacturing, telecom and pharma will also be entering the market and the demand for commercial space is bound to see a rise in 2016-2017.
In terms of volume, Bengaluru has witnessed the biggest surge in demand of commercial space as the demand by IT/ ITES. Mumbai and Pune have also felt the surge, along with Hyderabad, Chennai and Kolkata.
Experts feel this is due to the ‘Make in India’ policy and overall economic push which is leading to absorption of commercial space. This is going to be a positive trend because of the government creating a conducive business environment. There are many companies which are looking for expansion, consolidation for their core activities in Delhi NCR, Bengaluru and Mumbai. On the other hand cost benefits and increased availability of A-grade markets like Chennai, Kolkata , Ahmedabad are expected to bring spill over demand for back office operation from companies.
India has also become an outsourcing destination for multinationals and this also has increased the demand for commercial space. The reason for gaining momentum in demand for commercial space is-
Major demand by IT/ E-commerce set-ups, banking and financial retail.
Start-up culture driving the demand.
Warehousing gaining with GST hope.
Demand will remain consistent with occupiers showing a positive bias. Demand will increase and the developers are trying to meet them, so a healthy trend has come and a positive graph for the commercial spaces.
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