Most Indian cities are in the ‘sweet spot’ on the grounds of supply-and-demand fundamentals, as per a report by Colliers International. The powerful outlook is a result of positive economy, better job growth and thoughtful construction activities. Bangalore, now known as Bengaluru, stands at the top in office market absorptions from 2015 to mid-2016. Witnessing a great surge in demand, Bangalore surpasses major cities, such as Mumbai, Delhi/NCR, Pune and Kolkata.
Top Indian upcoming office trends
- The real estate sector is expected to be favoured by government’s support to prominent policy-level modifications, such as GST Bill, Land Bill, and Real Estate Regulation Bill.
- Micro markets are likely to witness major improvements in terms of rents and Grade A office space.
- The time around renewals of leases is expected to make occupiers from all sectors more space-efficient than ever.
- The Centre’s initiative “Make in India” and electronic retailing will make private enterprises invest more in the industrial and warehousing sector.
- Year 2016 is also expected to witness greater overseas investments with Real Estate Investment Trusts (REITs) backing off a bit.
Bangalore outperforms in office market absorptions
- Bangalore tops the chart with office absorption of around 13.43 million sqft throughout 2015.
- IT/ITeS continued to be the city’s chief commercial property demand driver with a share of around 57% (7.69 million sq ft) in the total absorption.
- The next industries to follow were Banking, Financial services and Insurance (BFSI) with a share of 20%, Manufacturing with 13% share and others, recording a share of 9%.
- Grade A office space was the priority of a majority of occupiers.
- With a share of 63%, the Outer Ring Road remained the most preferred micro market.
- Whitefield and Electronic City stands at 30%, with CBD following them with 7% share.
- Around 21 million sq ft supply of office space is in the pipeline in the next three years.
The expansion spree of major market players, such as GE, Mercedes, Netmagic, HCL and Thomas Reuters is expected to lend a positive outlook to the office real estate trends in Bangalore over the next 12 months.
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