According to the latest report by a real estate firm, Indian commercial office sector has outperformed in almost all the segments in 2018. The report which is published by Knight Frank India stated that in 2018, the commercial space leasing crossed the 46 million sq ft mark, which is the best till date.
The report is compiled after a comprehensive analysis of seven top commercial markets that include Mumbai, Bengaluru, NCR, Pune, Ahmedabad, Hyderabad, and Chennai.
The office market also showed a record growth of 12% YoY in 2018 and some historical transactions in both H1 and H2, 2018.
Here are some of the main highlights of the report:
- As compared to 2017, supply of commercial office space increased by 13% in the country. This has led to an increase in the leasing volume which has been recorded as 46.8 million sq ft in 2018 as compared to 36.9 million sq ft in 2017.
- Among all the cities, Bengaluru tops in the office space supply category with 7.5 million sq ft. Due to this, the leasing volume was also highest among all the cities that are 13.4 million sq ft.
- Hyderabad noticed some of the highest real estate transaction deals with 30% increase YoY in 2018.
- Pune and NCR recorded a maximum number of commercial office space completion. Both Pune and Hyderabad also recorded maximum leasing activities as compared to 2017.
- Due to the thriving demand of office spaces in all the seven cities, rentals have also increased to much extent.
- One of the main factors that benefitted the commercial market most is the increase in demand of co-working office space. Almost all the startups prefer co-working space to run their business. Also, the sector saw a significant increase in the leasing activity by 52% as compared to 2017. The demand of co working spaces is taking over the whole commercial market with more and more employees preferring to work from such locations.