Office space stock in India represented by cities like Mumbai, NCR, Bengaluru, Chennai, Pune and Hyderabad doubled during the previous 5 year period from 227.7 mn.sq.ft. in 2007 to 446.3 mn.sq.ft. by 2012 Knight Frank India launched its research report titled Economy & Realty @ Glance for May 2013. Below are the key takeaways Office space stock in India represented by cities like Mumbai, NCR, Bengaluru, Chennai, Pune and Hyderabad doubled during the previous 5 year period from 227.7 mn.sq.ft. in 2007 to 446.3 mn.sq.ft. by 2012 Hence, despite strong absorption during this period, influx of incremental supply resulted in the vacancy levels increasing from 15% in 2007 to 19% by the end of 2012 The demand supply dynamics during the previous 5 years were clearly in favour of occupiers with rental movement across the CBD markets of these six cities declining in the range of 3%-28% Going forward, vacancy levels are expected to recede from 19% in 2012 to 17% by 2017 on the back of constrained incremental supply and improved demand condition Office space stock is expected to increase by only 40% to 642.2 mn.sq.ft. by 2017 as against doubling of stock during the preceding 5 year period The reduced vacancy levels will ensure rise in rentals across the country’s office market from 2013-2017 Hence, office space investments are expected to yield better returns going forward compared to the previous five year period.
Posted on: Sun, 16 Jun 2013 01:26:44 +0000
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