Office space supply to stay strong
The office space, a part of the commercial real estate, is expected to see a supply of additional 50 million sq ft in 2011-12 according to industry trackers.india Updated: Dec 15, 2010 23:15 IST
The office space, a part of the commercial real estate, is expected to see a supply of additional 50 million sq ft in 2011-12 according to industry trackers.
According to analysts, most of the new office space would come up in sub-urban Mumbai and Parel.
The Mumbai Metropolitan Region saw strong demand from Indian companies and end users in third quarter of 2010, BNP Paribas Real Estate said in a research report on Wednesday.
Almost 55 million sq ft of office space was added throughout India in 2010, with about 25% of those in Mumbai, real estate consultant CB Richard Ellis said in a report. Bangalore and the NCR followed with a 19% and a 17% share in new additions.
“At present, the total size of office space in India is 280 million sq ft, of which about 60 million sq ft is vacant, mainly in the NCR, Mumbai and Bangalore,” said Anshuman Magazine, chairman and managing director, South Asia, CB Richard Ellis.
Meanwhile the CBRE report said that in 2011 commercial properties would witness more transactions or increase in transaction velocity and absorption but will remain stable on the price fluctuation quotient. However, residential real estate will see a reduction in absorption and less price fluctuation.