Bengaluru | The country’s IT capital is expected to see the highest office space absorption among the key cities of India next year, says the latest office report by global real estate consultancy firm Cushman & Wakefield.
The total estimated Grade A office space absorption in India is expected to be approximately 36.8 msf (million square feet) in 2015, while the supply will be approximately 46.4 msf in the same period, it said.
The demand for office space in India would be driven by general growth in corporate activities both from global as well as domestic companies, which are expected to ramp up their operations in view of economic and political stability, C&W said in a release.
It said Bengaluru is expected to have the highest absorption of approximately 11.1 msf, followed by NCR at approximately 6.8 msf of office space absorption.
Sharing details from the report, the release said this will be at significantly improved levels compared to 2013 and 2014 highlighting the impact of improvement in business sentiment, political stability and macro-economic scenario on office market absorptions.
The trend is expected to gather pace in the second half of the New Year continuing its momentum into 2016, it added.
Further improvement in occupier sentiment is anticipated next year as occupiers pursue growth strategies. Relocations and consolidations will also continue with occupiers increasingly adopting innovative workplace strategies to attain efficiency in operations and costs, said Sanjay Dutt, Executive Managing Director, South Asia, Cushman&Wakefield.
Rents in suburban and peripheral locations will be largely range-bound next year due to steady infusion of supply but are expected to start firming thereafter as the supply pipeline shrinks, he added.
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