The demand for world-class office spaces in metro cities has always been on the rise. Indian corporate giants and multinational corporations want to expand their businesses in different parts of urbanized India for which they need to lease commercial spaces. According to a recent report published by JLL India, office space absorption in the Indian metro cities has significantly increased in February. Limited supply and improved demand are the main reasons behind an optimistic figure of commercial real estate in the metropolitans.
As reported by the Economic Times, Bangalore still stands on top of the list with maximum demand from giants like HP and NTT. The city grabbed a total of seven deals in the Outer Ring Road (ORR) area and Electronic City. It was followed by New Delhi and National Capital Region (NCR) that saw five transactions from Thai airways and several other company expansions. Ahmedabad, Mumbai, Pune and Hyderabad were other cities that were on the list. Unlike other time periods, Kolkata witnessed no activity in the month of February.
It was also brought into focus that there is a shortage of good quality commercial spaces in Indian cities. Developers need to come up with more commercial projects to meet the high demand. A number of organizations are looking forward to expand their business horizon for which they need space in favorable locations.
The space absorption in the cities also differed according to the market players. For example, most of the expansions in Mumbai belonged to the apparel industry, followed by Delhi/NCR and Hyderabad. Chennai and Ahmedabad witnessed demands from Food & Beverages segment.
The development in a city’s commercial real estate market has a direct impact on its residential realty. Therefore, these markets also witnessed a substantial improvement in their residential segment. However, the supply of these residential units matches the demand, thus keeping a balance in the industry. Mumbai was the only city where the demand for residential real estate slowed down due to weak market situations. All other cities saw an improvement in sales.
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