In India, the commercial property market is witnessing a huge increase and this is due to the growing business confidence and future prospects. In the world’s fastest growing economy the increase of assurance in the market has made the occupiers to prefer spacious and large office areas, for example, more than 100,000 sq. ft. During the first nine months of the financial year 2018-19 an increase of 15% with 69 transactions is recorded.
The Office space lease increased 35% to 18.2 million and this accounted to 50% of total leasing during the financial year. In respect to the large deals, the average deal size rose 27% this year according to a data of a real estate expert.
According to an expert, the large size deals accumulated for more than half of the leasing volumes during the current financial year and this indicates to the strong expansion and consolidation activity that is being carried out by the occupiers.
The maximum of such office space deals are recorded in Bengaluru and Hyderabad as these two cities remain highly active tech-driven office markets and are primarily preferred by technology companies. The high-end analytics and the captive centres are the leading occupier categories with substantial headcount growth plans the expert said.
According to a real estate expert, the maximum number of large transactions gets cracked for right and expansion. Today the developers are looking to weave a similar relationship with various organizations and most of them are currently deciding on the large requirements of commercial space.
Till now, the Bengaluru-based developer leased nearly 4 million sq. ft. space in Bengaluru and Hyderabad in the last nine months. JP Morgan and Microsoft also leased huge spaces for their upcoming projects in Hyderabad earlier, this year.
In comparison to the last financial year, the Office leasing registration earned 15% at 33 million sq. ft. across the top 8 cities of India from January-September. Mostly the companies seek integrating key verticals into one office in order to increase productivity, while expanding, consolidating and evaluating workplace transformation strategies for better facilities and amenities.