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Commercial real estate in India: trends and advancements

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Commercial real estate in India: trends and advancements

Last updated: December 18 2018
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  • #11

    #11

    Re : Commercial real estate in India: trends and advancements

    Office market to touch 39 million sq ft by 2020: JLL

    According to the study, net absorption in 2017 declined marginally to 28.7 million sq ft, while 2018 is expected to close at 33.3 million sq ftSobia Khan | ETRealty | Updated: December 13, 2018, 15:33 IST




    BENGALURU: Indian office market is expected to touch 39 million sq ft of net absorption by 2020 driven by strong pipeline and lower vacancy across topcommercial markets in the country, said a recent study by JLL India.

    According to the study, net absorption in 2017 declined marginally to 28.7 million sq ft, while 2018 is expected to close at 33.3 million sq ft.

    “Last few years have seen exponential growth of co-working as a concept across major office markets in India. The concentration of co-working spaces is expected to intensify further in Bengaluru, Mumbai and Gurgaon due to the availability of infrastructure and a vibrant start-up ecosystem,” said Ramesh Nair, CEO and country head, JLL India.

    The study further mentioned that of the total non-IT/ITeS space absorbed by different sectors, substantial space has been taken up by the emerging co-working sector as an increasing number of office occupiers/tenants have started considering shared space as a preferred option for office operations.

    In fact, share of co-working sector in total office leasing more than doubled to nearly 10% in the first nine months of 2018 compared to 4% year ago.

    “In times to come, some tier II and III markets are also expected to witness emergence of co-working hubs,” said Nair.

    According to the report, the office market pan-India is likely to see completions ranging from 38-45 million sq ft every year till 2020 indicating a strong supply pipeline. Vacancy also declined by 30 bps to 13.7% in July – September quarter of this year compared with 14% recorded in the preceding quarter due to higher demand and lower completions recorded across India.








    https://realty.economictimes.indiati...-2020/67074019


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    • #12

      #12

      Re : Commercial real estate in India: trends and advancements

      Bengaluru, Mumbai and Delhi-NCR leads flexible office absorption in India: JLL

      According to JLL data, Mumbai’s share in total office leasing in co-working sector tripled to 21% during January – September 2018 compared to 7% in the corresponding period of last year. Sobia Khan | ETRealty | Updated: December 14, 2018, 20:05 IST





      BENGALURU: Flexible office space across Bengaluru, Mumbai and Delhi-NCR is seeing increasing demand from large corporate occupiers as they look to trim costs and make their real estate portfolio agile amidst dynamic industry environment.

      According to JLL data, Mumbai’s share in total office leasing in co-working sector tripled to 21% during January – September 2018 compared to 7% in the corresponding period of last year.

      Bengaluru and Delhi-NCR are other prominent markets that saw their share growing by over three times.

      “The concentration of co-working spaces is expected to intensify further in Bengaluru, Mumbai and Gurgaon due to the availability of infrastructure and a vibrant start-up ecosystem. In times to come, some tier II and III markets are also expected to witness emergence of co-working hubs,” said Ramesh Nair, CEO and country head, JLL India.

      The report further states that nearly 40-45% of the demand for co-working space comes from corporates and large enterprises.

      Of the balance, small and medium enterprises along with individual professionals contribute 35-40% of the demand with 15-25% from start-ups.

      “Technological disruptions are affecting the way companies conduct their businesses globally. Today, almost 90 percent of C-suite leaders anticipate digital trends to disrupt their industries to a great or moderate extent. Commercial Real Estate heads will need to adapt their workplace strategies to this new reality,” said Sandeep Sethi, MD, integrated facilities management – West Asia, JLL India.

      An enormous gain for flexible spaces was low and insignificant upfront expenses in contrast with a conventional leases. Also, a co-working space is likely to lead to cost savings of 20-25% in markets like Delhi-NCR, Mumbai, Bengaluru and Pune compared with leasing a traditional office space.

      Currently, there are around 350 co-working players/service providers operating an estimated 500 shared workspaces across the country, compared with less than 30 in 2010, mentioned the report.










      https://realty.economictimes.indiati...india/67091285

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