Indian Commercial Real Estate Sector Clocked a Growth of 8Pct in 2016
BENGALURU: Propstack, a commercial data, information and analytics firm has published a report, which shows the success story of commercial real estate sector in its top seven markets of India. This achievement by the sector can be credited to the leasing the office space as well as the outright purchases. This significant booming in commercial real estate noticed an upsurge of up to 8pct as compared to the previous year statistics. The Business Insider website reported that in the first quarter of 2016, the commercial real estate recorded that the leasing and purchasing of office space has reached up to 5.8 million square feet.
During the previous year, the regenerated confidence of the corporate among the stable economic growth was a major factor of the increased captivity in the commercial real estate sector. The last year trend continued for this fiscal year too, which resulted with staggering numbers, thereby creating more job opportunity in the future. The Q1 of 2016, observed a growth of 23pct in the transactions of commercial real estate, by following the demands headed by the IT / ITeS, e-commerce, insurance, financial service and banking sectors. There are also some notable deals done in this time-period. These deals include companies like Genpact, Gurgaon; WNS, Mumbai; ADP, Hyderabad, and UBS, Pune.
If the current trend goes on, then 2016 will witness a record year in terms of the office space absorption in India. The market growth in the current year just reflects the mind frame of investors on business infrastructure.
The top seven markets in the commercial real estate sectors are Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune. According to a report by Propstack, many of these top markets showed a stable rise in the leasing amount that carry forwarded in the current quarter of 2016, only Kolkata excludes from this growth. The exact statistics show that Pune is leading the list with a rise of 6.9pct, Bengaluru closely follows with a growth rate of 5.7pct and Delhi-NCR with 2.8pct. Chennai saw a marginal rise of 2.6pct in rents followed by Mumbai with 1.2pct and Hyderabad saw a growth of 1.4pct.