Bengaluru Notches Top Position in office Space Demand in a Survey Spreading over Eight Cities

Hyderabad city has also witnessed an increase in the demand of office space to 2.3msf in the first quarter comparing to 2015 Q1 results. The increase is estimated at 107% with a net absorption of 1.2 msf and equivalent pre-commitments. In addition, supply has a great impact in the city with 49% growth to 1.4 msf in the first quarter of 2016.

Eight cities observed a robust 41% increase in the supply to 11.1 msf comprising cities in the likes of bengaluru, which is followed by Delhi-NCR and Hyderabad. The vacancies across cities were seen at 17.2 % at the end of Q1 in-spite of high infusion in supply and slashing absorption.

"The rise in demand was driven by the IT-ITES occupiers who executed their expansion strategies and increased their real estate footprint in Bengaluru. The IT driven sub-markets such as the Outer Ring Road (ORR) are currently witnessing all time low vacancy rates as the demand has consistently outpaced supply, creating an upward pressure on rents,” Karun Varma, Managing Director, Cushman & Wakefield, Bangalore.

Read Also: China, India Move Step Closer To Set Up Military Hotline
India Attaches Highest Priority To Ties With China: Manohar Parrikar