A recent study found that the absorption of office space in the city reached 1.7 million sq ft in October-December 2022. The technology sector accounts for the most office space at 43 percent, followed by manufacturing and flexible space operators.
A study by real estate consulting firm CBRE South Asia Pvt Ltd said on Sunday that office space absorption in the city stood at 1.7 million sq ft during the October-December 2022 period.
The technology sector accounted for 43 percent, while engineering and manufacturing accounted for 17 percent, flexible space operators 12 percent, while the IT segment alone took the lion's share of office absorption space.
According to the report, leasing in 2022 is expected to be dominated by small (less than 10,000 sq. ft.) to medium-sized 10,000 to 50,000 sq. ft. transactions. Large size deals of over 100,000 sq ft accounted for 7 per cent.
Bengaluru led the ranks in office space absorption, followed by New Delhi-NCR (National Capital Region) and Pune with sizable deals closing in 2022, while few deals were reported in Hyderabad, Mumbai, Chennai and Ahmedabad.
CBRE President & CEO India, South East Asia, Middle East & Africa, Anshuman Magazine said, “With continued improvement in leasing, reduction in vacancy levels and continued demand for investment-grade properties, rental rates across cities are expected to increase by 2022. Recovery continues."
In line with trends seen in the past, a strong supply pipeline and continued interest in investment-grade buildings by leading developers and institutional owners are likely to drive growth in development completions in 2023, he said.
According to Ram Chandnani, Managing Director (Advisory and Transaction Services), CBRE India, the technology sector will continue to drive leasing activity in 2023.
The share of leasing by sectors such as banking, financial services and insurance, flexible space, engineering and manufacturing is expected to increase annually, he said.
On the outlook for 2023, the magazine said that the famous Old Mahabalipuram Road Zone 1 and 2 popularly called the Information Technology corridor, Mount Poonamallee High Road (near DLF IT Park) is likely to see increased interest in 2023. Technology companies will continue to drive it. Space, he said.
The banking, financial services and insurance, engineering and manufacturing sectors are expected to pick up, while new supply is likely to increase in non-SEZ sectors.
On the residential front, he said that the south and west Chennai markets would continue to dominate both sales and new launches. "The mid-end and high-end categories are likely to be the key drivers of housing sales and launches," he added.
On the logistics sector, he said demand is likely to increase in the western and northern corridors due to the need for better quality warehouses.
"The continued expansion of e-commerce players along with engineering and manufacturing, auto and ancillary, is expected to take up the space," he added.
No comments:
Post a Comment