Inactivity in office space absorption to end soon

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Inactivity in office space absorption ends soon
in India
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Office space absorption in Q1 2016

• Office space absorption in India saw a
  significant decline in the first quarter of 2016.
• The first quarter registered the absorption of
  about 5 million sq. ft.
• It is actually a drop of 26 when compared to the
  same quarter (Q1) of the previous year.

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Representation of office space absorption and
vacancy rate in Q1 2016
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• According to a popular real estate advisory firm,
  most of the companies were busy making their
  plans for the year.
• Experts view is clear that they dont want to
  give up the commercial real estate market in
  India.
• They say that the market sentiment is still
  optimistic even after a bit disappointing first
  quarter.
• The reason they give is that, India is one of the
  favorite outsourcing destination for many
  multinationals, and its true also.

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Pictorial representation of outsourcing in Asian
countries
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Delhi, Mumbai and Bengaluru Leads in Absorption

• Delhi NCR accounted for the 31 of the overall
  office space absorption during the period,
  followed by Mumbai (contributing 23) and
  Bengaluru (17).
• Gurgaon seemed to have evoked a healthy interest
  among the corporates, while Navi Mumbai, Thane,
  and Vikhroli saw some prominent activity in
  Mumbai market.
• Similarly, Whitefield, Koramangala and Electronic
  City are the areas that witnessed major
  activities in Bengaluru.
• The first quarter also saw a few occupiers
  pre-committing to the space when they are still
  under construction, mainly in Mumbai and Gurgaon.

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Absorption rate in Delhi, Mumbai and Bengaluru
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Very Few Large-sized Transactions during the
Period

• In terms of size, the transactions that are less
  than 10,000 sq. ft. holds 44 of the share.
• The medium sized transactions ranging between
  20,000 and 50,000 sq. ft. holds the share of
  about 19.
• The large-sized transactions (greater than
  100,000 sq. ft.) had a very less share of about
  6.

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• Seeing the reports, the experts have foreseen
  that the next three quarters of the on-going year
  are sure to see a rise in leasing activity.
• As the corporate firms based out in other
  countries continue to expand their operations in
  India, the demand for office space is going to
  rise and hence the absorption.
• But with the developed infrastructure as well as
  availability of the cost-effective spaces,
  peripheral locations may also witness increased
  traction.

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  alore.com/

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Thank You

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