Realty Updates India - Commercial space leasing looking postive - Q3 2014

 Real Estate India - Corporate space take-up peaks in Q3 of 2014

A commercial property survey observed office property take-up during quarter ended December 2014 at the highest in the last 3 years at 9 million square feet. The largest portion of growth contributing to this spike was observed in Bengaluru at 37 percent year-on-year. Delhi NCR came a close second showing 24 percent growth y-o-y. The combined national total for calendar year 2104 crossed 33mn sq.ft. indicating a y-o-y increase of around 10 percent from 2013.

Detailed study of the figures revealed a larger portion of office space take-up by multi-national companies. Clearly, the investing world has enthusiastically reciprocated Prime Minister Modi’s call to invest in India. Having recently rolled out his ‘Make In India’ campaign, the real estate sector expects sustained growth in demand for commercial space in the coming quarters.

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IT parks and other core commercial spaces, both in completed and well-leased segments also reflected significant growth. “The country’s growth story had paused and gone on a downslide in recent years. But thankfully the indices are again northward bound reviving investor confidence, especially in real estate” a promoter at a prominent builder firm observed. There are comparative figures from other sources to boost industry confidence even higher. Reputed brokerage HDFC securities said in the corresponding quarter of previous year, the absorption was 10.1mn sq.ft. which too was 40 percent above its previous quarter (ended Sept.2013) and 95 percent higher than Q3 of 2012. The current growth also marks the first spike to cross 10mn sq.ft. in quarterly absorption on a nation-wide index. Further rise in absorption level is expected as India Inc. seems very bullish about the business climate in 2015.