{"id":1865,"date":"2017-10-31T17:09:11","date_gmt":"2017-10-31T11:39:11","guid":{"rendered":"https:\/\/www.propstack.com\/news\/?p=1865"},"modified":"2017-10-31T17:09:11","modified_gmt":"2017-10-31T11:39:11","slug":"propstack-insights-india-cre-review","status":"publish","type":"post","link":"https:\/\/www.propstack.com\/news\/propstack-insights-india-cre-review\/","title":{"rendered":"Propstack Insights: India CRE Review"},"content":{"rendered":"

Let’s re-look at our past ten infographic highlights for the Indian CRE Market.<\/p>\n

Top 7 CRE markets in India recorded leasing activity of 26\u00a0msf\u00a0in the first half of 2017 compared to 24.5\u00a0msf\u00a0during the same time last year. Gross Absorption for Chennai and Noida more than doubled in H1 2017 compared to H1 2016. Hyderabad also witnessed a sizeable growth in leasing activity in H1 2017 compared to the same period last year.\u00a0Whilst Mumbai maintained similar absorption levels compared to last year in the first six months of 2017, Bangalore, Pune and Gurgaon saw a decline during the period in y-o-y\u00a0comparison.<\/p>\n

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\nThe top 3 cities in South India will witness cumulative lease expiries of 9.7\u00a0msf.Bangalore will contribute to more than 2\/3rd of these lease\u00a0expiries.\u00a0Since these cities are dominated by IT-ITeS\u00a0occupiers, predominantly occupying large spaces, deals above 1 lakh\u00a0sf\u00a0will form 43.5% of the total lease expiry volume.<\/p>\n

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The office construction completions slows in HY1 2017, with 6.7\u00a0msf\u00a0delivered across cities, down by 48% compared to H1 2016.<\/p>\n

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\nWith the recent\u00a0news, 20-acre IT Park to\u00a0be built\u00a0in Chennai by Hiranandani Group, the city is on its way of being the next IT hub of the country. Strong leasing activity has fueled the absorption in Chennai IT parks, contributing more than fifty percent of the total.\u00a0The vacancy in IT park, continued to fall, ending HY1 2017 at 6 percent.<\/p>\n

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\nOccupiers across cities prefer taking up office spaces in SBDs and PBDs. The transition is driven by occupiers demand for affordable rents, Grade A offices, expansion space and transit-served markets.\u00a0Propstack analysed \u00a0> 25,000 sf deals in 2017. SBDs outshine CBDs.\"Banner<\/p>\n

The demand for a furnished plug and play office space in Mumbai is increasing steadily, average rentals for the furnished offices have however declined.\u00a0Propstack observed that the number of furnished transactions increased by average 16% y-o-y, whereas the rentals have decreased by average 4%.<\/p>\n

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A CAM (Common Area Maintenance) charge is an additional cost, added to the base rent, paid collectively for the maintenance of the commonly owned premises such as the parking lot, lawns, corridors, lobbies, elevators, etc. Propstack compared CAM fee across top cities in India to assess the\u00a0micromarkets\u00a0with highest CAM fee. Rest of Gurgaon\u00a0micromarket\u00a0has the highest CAM at Rs 21\u00a0psf\u00a0\/ month.<\/p>\n

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Pune office rentals have been on an upswing\u00a0due to limited availability coupled with steady demand for quality office space. Therefore\u00a0Pune’s office average yield is increasing every year. Propstack analyzed the rent-yielding\u00a0micromarkets. PBD west offers the highest yield for prime office space.<\/p>\n

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In 2017, the office leasing activity in Bangalore remained strong and maintained its momentum.\u00a0100000+sf deals contributed to nearly\u00a079%<\/strong>\u00a0of the total Gross absorption. Nearly\u00a0\u00a084%<\/strong>\u00a0of the total 100,000+sf transactions are New Leases.<\/p>\n

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Hyderabad office supply in SBD II\u00a0micromarket\u00a0increased significantly. Strong leasing activity and\u00a0entry of multinational giants, absorbed the new supply, keeping vacancy low for IT SEZ buildings.<\/p>\n

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*Grade\u00a0A office\u00a0data only<\/p>\n

For more details login to\u00a0office.propstack.com<\/a><\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Let’s re-look at our past ten infographic highlights for the Indian CRE Market. Top 7 CRE markets in India recorded leasing activity of 26\u00a0msf\u00a0in the first half of 2017 compared to 24.5\u00a0msf\u00a0during the same time last year. Gross Absorption for Chennai and Noida more than doubled in H1 2017 compared to H1 2016. Hyderabad also\u2026 Read More »<\/a><\/span><\/p>\n","protected":false},"author":4,"featured_media":1866,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,9,2,13,18,7,15,19,20,28,3,5,11,14,16,8,21,1],"tags":[179,169,177,128],"class_list":["post-1865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bangalore","category-chennai","category-city","category-companies","category-deals","category-hyderabad","category-international","category-investment","category-lease","category-market","category-mumbai","category-ncr","category-others","category-policy","category-propstack","category-pune","category-sale","category-uncategorized","tag-179","tag-cre","tag-insights","tag-propstack"],"_links":{"self":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/1865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/comments?post=1865"}],"version-history":[{"count":2,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/1865\/revisions"}],"predecessor-version":[{"id":1891,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/1865\/revisions\/1891"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/media\/1866"}],"wp:attachment":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/media?parent=1865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/categories?post=1865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/tags?post=1865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}