Year 2018 was a veritable roller-coaster ride for the Indian real estate. Despite signs of recovery across segments, the liquidity crunch – further exacerbated by the NBFC crisis – put all industry stakeholders on tenterhooks.
Pune’s Grade A commercial office real estate market has been increasingly attracting the attention of major office space occupiers as a second option to Mumbai, because of its freshly available quality space options, comparatively affordable rental rates, as well as its proximity to and excellent connectivity with India’s financial capital.
The Q2 2014 saw an approximately 26 per cent increase in quarter-on-quarter (q-o-q) total office space absorption across seven leading cities in India, from a little more than 6 million sq ft in Q1 2014 to nearly 8 million sq ft in Q2 2014, according to CBRE’s quarterly office report – India Office Market View – Q2, 2014.
As per a report by Jones Lang LaSalle (JLL), around five crore (50 million) sq ft of office space across the country is lying vacant, while the current demand is around 3 crore sq ft annually. A JLL report compiled in seven major Indian cities — the four metros and Pune, Bangalore and Hyderabad — says that as of December 2012, the total under construction real estate was valued at $173 billion (approximately Rs 10 lakh crore).
In the absorption of office space, Mumbai's Andheri-Goregaon business district, the city's western suburbs, has beaten some of the city’s established business hubs, such as Nariman Point, Bandra-Kurla Complex and Lower Parel-Worli.
In the second half of 2013, demand for office space is expected to be strengthened by finance companies. Also, more new space is expected to be leased out in the next 12 months as rents are likely to increase thereafter.
In Bangalore, global technology firm Honeywell Technology Solutions (HTS) is taking up a million sq ft of office space, making it the second-biggest office leasing deal in the country in the last two years. At 48 per sq ft, Honeywell Technology Solutions will pay an annual rental of close to Rs 58 crore for the office space in RMZ's special economic zone, RMZ Ecoworld, people familiar with the transaction said.