Commercial real estate on a rise in India, upped 8% from last year

A report from the commercial data information and analytics firm Propstack has said that India’s top seven markets absorbed considerable commercial real estate with both outright purchases and leasing of office space. This has upped the commercial real estate to 5.8 million square feet during the Q1 of 2016, seeing a rise of 8% from a year ago.

Last year, renewed corporate confidence amid steady economic growth brightened the scene of commercial real estate. The trend has continued this year as well, indicating economy's health and scope of job creation.

The quarter saw commercial real estate transactions going up 23%, with demands being led by companies in BFSI (banking, financial service and insurance), e-commerce and IT/ITeS sectors.

It also saw some significant deals, including those of WNS in Mumbai, UBS at Pune, ADP in Hyderabad and Genpact in Gurgaon.

"If the current momentum continues, 2016 could well be a record year for office space absorption in India. Commercial real estate is clearly reflecting the mood on business front and based on the pipeline for office space demand we are heading towards registering a strong year," Seetharaman said.

The top seven markets include Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad and Kolkata.

As per the Propstack report, most of these cities showed a steady growth in rents in the quarter that went by, except Kolkata. Talking in exact figures, Pune led the pack with 6.9% rise, followed by Bengaluru’s 5.7% and Delhi-NCR’s 2.8% growth. While Chennai and Mumbai saw marginal rises of 2.6% and 1.2%, Hyderabad saw a rise of 1.4%.

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