Plummeting demand for office space in Chennai and Pune
Posted on: 30/May/2017 4:08:34 PM
Due to increasing popularity of Grade A office spaces, there is substantial increase in rental rates in both Chennai and Pune. As per reports, there is record breaking growth in office space rates in these two cities. The hike is of 100.7 and 100 in Pune and Chennai respectively. The indexing is done with the base of third quarter of 2008.
Lower vacancy:
The demographic shift, business friendly environment and the imperative need for quality office space are largely influenced by the commercial realty landscape. However, because of confined amount of launches, because of disequilibrium of demand-supply, there is drastic increase in leasing.
The real estate developers have mostly not invested in commercial constructions. This has aided them in having stronger commend over premium of prime asset, as there is multiplying footprint of IT firms and Banking. Besides manufacturing and logistics sectors, there is substantial growth in fast moving consumer goods.
In terms of office leases, with 35-40 percent, IT and ITeS sectors have topped the list. Major global firms are widening their functioning in India. They look for spaces that cater to international standards. Mostly, the IT tenants opt for Grade A spaces that comprise of the contemporary quality structures neatly and professionally managed and has topnotch infrastructure. These should also offer excellent accessibility to the location.
What is the future trend?
Most of the central markets have attained the threshold limit. So now, the IT and knowledge hubs are switching from places like Guindy or OMR to Velachery, Vadapalani or Nungambakkam.
The global finance giants have force-started demand for office space. Among the firms in look out for affordable locations are Credit Suisse, StanChart, Barclays, Citigroup, etc.
