The period ending 1Q11 witnessed moderate activity in the office market in the city. With CBD vacancy rates continuing to hover at around 1%, office transactions were limited to either small office queries or larger office spaces that were inevitably a churn in the existing stock.
Ascendas India Development Trust (AIDT), the India-focused real estate fund floated by Singapore-based office space developer, is looking to raise close to $350 million.
Omkar Realtors & Developers Pvt Ltd has launched its second project in Andheri East ‘The Summit – Business Bay’. This business centre offers small, flexible & self-contained office spaces starting at 994 sq. ft. The grand single tower infrastructure soaring high on connectivity and accessibility is characterized by 13 floors of office space spread over 5 lakh sq ft.
Mumbai witnessed the highest absorption in the year in 4Q10 which was recorded at 1,328,582 sq ft (123,429 sqm) indicating robust demand. Demand for Grade A office space was broad-based and not restricted to the banking, financial services and insurance (BFSI) sectors, which typically dominate Mumbai’s tenant landscape. Domestic and multinational occupiers from the consulting, aviation, IT/ITES and other industries were active in acquiring front-office and back-office space in 4Q10.
The period ending 4Q10 witnessed low to moderate activity levels in the CBD and SBD of Delhi NCR. The CBD, with its low vacancy levels, continued to cater to small office queries, while the SBD with significantly more office stock, catered to the larger corporate office space demand.
After Gurgaon One, western part of the city might see rise of another multi-storey building in the same vicinity. Jawala Mills, decades-old defunct textile mill on Old Delhi Road is slated to be sold by mid-February. The 17 acres of land was first purchased by IT major Aricent Technologies in early 2000s as tech firm wanted to re-develop the area into an office space. However, the new Master Plan of Gurgaon has marked the area as a residential zone. Following this, Aricent Technologies have decided to put the land up for sale.
The Gurgaon-based real estate developer, Orris Infrastructure, has launched a new age commercial complex ‘Business Square’ in Sector 82A, New Gurgaon. The project, which is spread over an area of 9.5 acres, has three towers that will offer office space and also includes a convention centre, 5-star and business hotel, according to the company.
Faced with the prospect of new transactions, corporate real estate (CRE) managers have been analyzing the options of leasing versus buying a real estate space. In the recent slowdown, distinct trends have emerged among industry verticals while strategically choosing either to lease or buy real estate space. While the IT/ITES sector has been the front runner in terms of lease transactions recorded during 2H08-1H10, accounting for 41% of the total lease transactions, BFSI and Manufacturing / Industrial sectors have been dominant purchasers of office space during the same period.
Q3 2024 attracted USD 1.1 Bn inflows, 45% higher over Q3 2023. Office segment drove over half of the investments in Q3 2024, followed by residential with 33% share. Domestic investments accounted for 44% of the total investments during the quarter. Chennai & Mumbai cumulatively attracted 57% of the inflows in Q3 2024. Sustained confidence in Indian economy continued to drive institutional investments into the real estate sector, reaching USD 4.7 billion during the first three quarters of 2024, almost at par with the corresponding period in 2023. Following significant inflows in the first two quarters, Q3 2024 too registered healthy investment inflow of about USD 1.1 billion, reflecting a 45% YoY growth.
This strategic growth is expected to be driven by a focus on innovation as these companies seek to enhance their technological capabilities and market presence. Moreover, emerging technologies are projected to generate approximately 4.7 million tech jobs over the next five years across diverse sectors, including manufacturing, retail, education, finance, and insurance. This surge in job creation underscores the growing importance of technology across industries and highlights the need for a skilled workforce to meet the evolving demands of the digital economy.