Commercial leasing to grow across 7 major cities over 4 yrs
Bengaluru: The commercial leasing activity is expected to continue its strong momentum across seven major cities over the next four year with IT/ITeS and flexible office space driving the demand.According to Colliers International, between 2020-24, the office space is expected to witness average annual gross absorption of 5.1 million sq metres, outpacing the annual average gross absorption of the preceding five-year period by about 14%.“We expect Hyderabad to be among the top four office markets in India by 2024, led by expansion of technology companies, and global in-house centres,” said Megha Maan, senior associate director-research, Colliers International India.
Hyderabad has risen to the second spot in gross office absorption in 2019.Colliers said, the new supply is also expected to reach a new peak during 2020-24 with average annual supply at about 5.9 million sq metres.“Over the past few years, we have been focusing on expanding our presence across India with upcoming developments in Mumbai, Pune, Ahmedabad, Delhi and Gurgaon. We are excited about strengthening our business in the new markets, while continuing to transform the Indian realty sector,” said Irfan Razack, CMD, Prestige Group.However, over 2020-24, the pan-India average rentals will slow at CAGR 1.1% owing to huge quantum of supply planned over the next five years. The average rentals values increased by 3.1% yoy, led by strong demand.
Economic Times
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