Smantha Sen

India’s IT capital Bangalore absorbed the highest 13.5 million, or 33.75%, of the 40 million sq ft of commercial space.However, it was the NCR-- comprising Delhi, Gurgaon, Noida, Ghaziabad and Faridabad--that recorded the highest growth of 100% absorbing 6.4 million sq ft in 2006 against just 3.2 million sq ft in 2005. An additional 3.5 million sq ft has been committed for possession in 2007l space leased or committed in India in 2006.

Chennai, with a total uptake of 6.5 million square feet was third. Mumbai was Chennai’s nearest competitor with 5 million sq.ft. At number five, six and seven were Hyderabad, Pune and Kolkata, respectively, with 3 million sq.ft., 2.6 million sq.ft. and 1.5 million sq.ft. Sanjay Dutt, managing director, Cushman and Wakefield explains that Bangalore has continued to lead the realty absorption tally is because the garden city currently has the maximum real estate developers anywhere in the country.

Office market comprises IT & ITES corporate office segment as well as non-IT & ITES corporate segment i.e. insurance, banking, corporate houses etc. For the last few years, the NCR market has been led by IT & ITES sector, especially in Noida & Gurgaon. Delhi has attracted non-IT and ITeS segment because the central business district for the NCR region is in Delhi. Another reason is that “the high demand for commercial space in NCR is driven by IT/ITES and now the retail industry.