Demands for Commercial Office Spaces on Rent has Grown
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Commercial office space For Rent in India
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As per the new articles and surveys it is noticed that the Demands for Office Space on Rent has Grown throughout the country India. The various surveys have supported the commercial leasing market and have shown drastic growth in few cities and little growth in other few cities of India. The following article has been taken from one of the leading research company and has shown the growth and demand of rentals of major cities of India.
In 2016, the technology-driven office markets such as Bengaluru, Chennai, Hyderabad and Pune witnessed a significant rental increase in preferred micro-markets. If we look at YoY trends, a couple of micro markets such as ORR in Bengaluru, SBD in Hyderabad and Off CBD locations in Chennai even witnessed a double-digit increase in rents.
The growing office demand is outstripping the supply in all these cities, therefore, leading to a continual downward pressure on vacancies and upward pressure on monthly gross office rents in these markets. Demonetisation may put a further upward pressure on rents in these markets due to, limited availability of grade A stock and new projects may take more time to get complete.
Demand of Office space for rent in Bengaluru.
The city remained in top preference of IT-BPM occupiers. Outer Ring Road (Sarjapur – Marathahalli) witnessed an annual rental uptick of 20%, EPIP Zone/Whitefield noted a 27% appreciation Hosur Road and Bannerghatta Road noted single digit 3-7% annual uptick. CBD and Outer Ring Road (K.R. Puram – Hebbal), too witnessed moderate rental appreciation to the tune of 9% and 17% respectively due to steady transaction volume.
Demand of Office space for rent in Hyderabad.
With the technology giant such as Apple and Google announced large technology centres in the city, Hyderabad office absorption nearly doubled this year. The western suburbs or SBD, with a sizeable concentration of entire Grade A stock, noted a 21% yearly rental uptick due to continually high occupier demand. Other micro markets witnessed a stable rent scenario due to lower leasing volume. In fact, Off CBD, with a low concentration of Grade A buildings noted a rental dip in many locations due to small occupier appetite for second-generation spaces.
Demand of Office space for rent in Chennai.
Demand for quality office space within the city limits pushed the Off CBD rents by about 18% YOY. Ambattur, too, noted a 21% annual rental uptick due to higher quoted rentals for limited availabilities in Grade A stock. OMR – Pre Toll saw 9% YOY rental uptick due to steady demand and occupier preference for this peripheral submarket. OMR – Post Toll too noted marginal rental appreciation of 3% on a YOY basis.
Demand of Office space for rent in Pune.
Scarcity of quality supply rents have increased across micro markets in Pune. It is worthwhile to note, that most of the micro markets have seen an average increase of 11% on a YOY basis while a few micro markets such as Kharadi, Hadapsar, Fursungi has noted YOY increase as high as 18% due to occupier preference and continuous scarcity of grade A supply. Capital values, however, witnessed a 2% to 8% increase in locations such as Nagar Road and Aundh.
Demand of Office space for rent in Gurgaon.
Average rental values have registered a slight increase of 2% on YOY basis, but preferred office destination such as Cyber city and Udyog Vihar recorded 7% upsurge in rents. With rapid metro likely to see completion in Q1 2017, asking rents in a few premium grade A buildings in Golf Course Road touched as high as INR 200 per sq ft while annual increase in average rents was about 5% YoY.
Demand of Office space for rent in NOIDA.
Average rents remained unchanged on YOY basis, but IT buildings in Institutional Sectors along Noida Expressway registered a 9.5% escalation in rental values. Commercial and Industrial Sectors have recorded a slight dip in rents to retain existing occupiers. With vital supply scheduled for completion in the next half, rents shall remain under pressure, but premium buildings are likely to command a premium over market rents.
Demand of Office space rent for in Delhi.
Rents registered a negative growth on YOY basis, however, new grade A buildings continued to demand a premium over market rates due to limited availability and occupier preference. We foresee rents to remain stable for well-located grade A as well as Grade B buildings in most of the micro markets. However, high rents in premium buildings may push rents upward in CBD locations.
Demand of Office space for rent in Mumbai.
Capital and rental values have not shown any significant changes and remained stable in this quarter as well. However, reduced vacancy in certain micro markets is putting upward pressure on rents; for example, Thane market has witnessed 19% YoY rent appreciation due to restricted availability of stock to a few buildings in the entire micro-market. On the other hand, a few premium buildings at BKC were demanding higher rents putting upward pressure on average market rents.
Demand of Office space for rent in Kolkata.
Amid subdued demand and double-digit vacancy rates, landlords remained cautious. Rents and Capital Values remained stable in the quarter across all micro markets. However, on YOY basis, rents in SBD and Sector V have registered 7% and 3% decline, respectively. Tags Surabhi Arora from Colliers and have given the above research data and growth percentage of major cities of India.
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