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Primary space take-up drives leasing activity in city, states CBRE report
CBRE South Asia Pvt Ltd, a real estate consulting firm, on Monday announced the findings of its India Office MarketView – Q4 2019 report, which states that primary
CBRE South Asia Pvt Ltd, a real estate consulting firm, on Monday announced the findings of its India Office MarketView – Q4 2019 report, which states that primary space take-up is driving leasing activity in Pune.
This is due to the availability of space in recently completed investment-grade developments in Kharadi area, the report claimed.
Anuj Dhody, senior director, advisory and transaction services, India, CBRE South Asia, said, “Pune was among the leading drivers of leasing activity across the country . Transaction activity was driven by the developments of Special Economic Zones (SEZ) in Secondary Business District (SBD), Kharadi, followed by developments in Peripheral Business District (PBD) others.”
The report states that the secondary space take-up was primarily witnessed in East Pune.
“Going forward, absorption is expected to be mainly driven by India’s position as a preferred outsourcing destination and growing need for space among corporates from sectors such as tech, Banking, financial services and insurance (BFSI), engineering and manufacturing and research, and analytics,” said Ram Chandnani, managing director, advisory and transaction services, India, CBRE South Asia Pvt Ltd.
According to the Q4 2019 report, Information technology firms primarily drove space take-up, closely followed by Banking, financial services and insurance (BFSI) firms. Small to medium sized transactions, that is less than 50,000 sq ft mainly drove the leasing activity.
The city also witnessed the closure of a few large-sized deals, that is greater than 1,00,000 sq ft in Special Economic Zones (SEZ) and IT development sectors, stated the report.
According to the report, supply addition was witnessed in the form of two medium-sized IT developments in Balewadi in SBD West and Phursungi in PBD others, along with a large-sized SEZ development in SBD Kharadi.
Limited availability of space across preferred IT developments, led to an increase of about one to six per cent in rental values on a quarterly basis across PBD Hinjewadi, SBD west, SBD east and PBD Others.
Special Economic Zones rents in Peripheral Business District (PBD) others increased by four to six per cent on a quarterly basis due to higher quotes by recently completed developments, stated the report.
