Skip to content
Search

Latest Stories

Indian Office Space Market Hits Record Transaction Volumes Of 46.8MSF In 2018

Indian office space market has achieved record transaction level in 2018 growing 12 per cent year-on-year (YoY) last year saw the highest level of transaction volumes of 46.8 msf.

The 46.8 msf transaction volume was, in fact, the highest space transacted ever in the Indian office space market in any single year, said Knight Frank India in a report on Tuesday (8).


Knight Frank India report, ‘India Real Estate’ which presents a comprehensive analysis of the residential (across eight cities) and office (across seven cities) market performance in the country states that 2018 as the best performing year historically for the commercial office segment with leasing crossing 46 million square feet (msf).

Bengaluru continued to lead the office space market recording the highest leasing volumes at 13.4 msf. Office space supply in the city was recorded at 7.6 msf in 2018.

Hyderabad saw the highest percentage increase in space transacted YoY in the second half of 2018 at 30 per cent.

Except for Ahmedabad (-29 per cent) and Chennai (-23 per cent), leasing activities saw a positive growth trend in leasing in full-year 2018 compared to 2017.

Pune recorded the highest percentage growth at 46 per cent YoY in 2018, but the significant jump in leasing volumes was in Hyderabad which, while recording a yearly increase of 24 per cent in 2018, saw leasing worth seven msf. This volume is significantly closer to those in large markets such as the national capital region and Mumbai.

Supply of new office spaces saw a commensurate increase to leasing volumes recording an increase of 13 per cent in full-year 2018 when compared to 2017.

The total supply for 2017 was recorded at 36.9 msf.

Pune (229 per cent) and NCR (86 per cent) saw maximum new completions during 2018.

Mumbai (-37 per cent) and Chennai (-28 per cent) saw a decline. The decline in fresh supply in Chennai has also impacted level leasing activities

The vacancy has seen a marginal improvement in the last year settling at approximately 12 per cent at the end of 2018, with southern cities of Bengaluru (four per cent), Hyderabad (seven per cent), Chennai (11 per cent) keeping the vacancies low. Pune also recorded a low vacancy (eight per cent).

Leasing by co-working spaces saw a significant rise of 52 per cent YoY in H2 2018 (Jun-Dec) as compared to same time 2017. BFSI, led mostly by payment gateway companies, formed 18 per cent of all leasing transactions in the second half of 2018.

The latest data shows firm economic activity in 2018. The year 2019 is expected to witness undercurrents of several geopolitical events and resultant economic developments that may impact India’s office markets and businesses, the report said.

More For You

Shein-Reuters

Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)

Shein cuts valuation to £40 billion for London listing

SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.

This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.

Keep ReadingShow less
Northern-Superchargers-Getty

Ben Stokes and Matthew Short of Northern Superchargers walk out to bat during The Hundred match between Manchester Originals and Northern Superchargers on August 11, 2024 in Manchester, England. (Photo: Getty Images)

Sunrisers Hyderabad to acquire Northern Superchargers in £100 million deal

INDIAN Premier League franchise Sunrisers Hyderabad is set to become the first full owners of an English Hundred team after agreeing to buy Yorkshire’s Northern Superchargers for a reported £100 million.

The Sun Group will be the third IPL-linked investor in the eight-team Hundred competition, following Reliance Industries, which owns Mumbai Indians, and RPSG, which runs Lucknow Super Giants.

Keep ReadingShow less
BT-Getty

A view of the British Telecom (BT) headquarters in central London. (Photo: Getty Images)

BT to remove diversity targets from manager bonuses

BT will remove diversity, equity, and inclusion (DEI) targets from its manager bonus scheme, replacing them with a measure of overall employee engagement.

The change, set to take effect in April, follows consultation with major investors and has received “strong support,” according to the company, The Telegraph reported.

Keep ReadingShow less
India's central bank cuts interest rates for first time since 2020

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.. (Photo credit: Reuters)

India's central bank cuts interest rates for first time since 2020

THE RESERVE BANK OF INDIA (RBI) reduced interest rates on Friday for the first time in nearly five years, citing concerns over economic growth despite inflation risks.

The central bank announced a 25-basis-point cut in the benchmark repo rate to 6.25 per cent, the rate at which it lends to commercial banks.

Keep ReadingShow less
Sri Lanka seeks to negotiate with Adani over renewable energy plants

Gautam Adani

Sri Lanka seeks to negotiate with Adani over renewable energy plants

SRI LANKA’S government started talks with India’s Adani Group to lower the cost of power from two wind power projects the group will build in the island nation’s northern province, the cabinet spokesman said last Tuesday (28).

Sri Lanka has been reviewing the group’s local projects after US authorities in November accused billionaire founder Gautam Adani and other executives of being part of a scheme to pay bribes to secure Indian power supply contracts. Adani has denied the allegations.

Keep ReadingShow less