Backed by robust business confidence and bright prospects in an economy
that’s ever-growing, Commercial Spaces continued to thrive in 2018. This gave
the Indian Economy a further edge as the year ended on a happy note. What
was interesting to see was that India jumped up to 23 spots, gaining the 77th
position in the World Bank’s Ease of Doing Business index.
India’s commercial office sector was seen as a chief contributor to the
improvement in the country’s business environment. Occupiers picked large
office spaces as their preference, highlighting their increased assurance in the
office market. A study from Cushman & Wakefield revealed deals above
100,000 sq. ft. space to account for about 50% of gross leasing activity of 47
million sq. ft. in 2018.
Office Leasing rose to approximately 35% to 18.2 million and accounted for
50% of the total leasing in the first 9 months of 2018. As a result, the average
deal size rose to 27% to approximately 34,200 sq. ft.
Cities like Gurugram, Chennai, and Hyderabad that have large presence have
witnessed robust growth in pre-commitments and inquiries. Premium quality
workspaces with LEED Platinum ratings and the highest standards of safety
have attracted potential occupiers. India’s commercial real estate investments
have also been the highest in 10 years with approximately $2.6 billion being
invested during the first 3 quarters.
This study has revealed India’s leasing market to be in good health and has
given investors across the globe confidence to invest in the Indian commercial
market. With complete support from India’s first REIT filing by Blackstone and
Embassy in September 2018, foreign investors are on a lookout for Greenfield
and Brownfield projects.
that’s ever-growing, Commercial Spaces continued to thrive in 2018. This gave
the Indian Economy a further edge as the year ended on a happy note. What
was interesting to see was that India jumped up to 23 spots, gaining the 77th
position in the World Bank’s Ease of Doing Business index.
improvement in the country’s business environment. Occupiers picked large
office spaces as their preference, highlighting their increased assurance in the
office market. A study from Cushman & Wakefield revealed deals above
100,000 sq. ft. space to account for about 50% of gross leasing activity of 47
million sq. ft. in 2018.
Office Leasing rose to approximately 35% to 18.2 million and accounted for
50% of the total leasing in the first 9 months of 2018. As a result, the average
deal size rose to 27% to approximately 34,200 sq. ft.
Cities like Gurugram, Chennai, and Hyderabad that have large presence have
witnessed robust growth in pre-commitments and inquiries. Premium quality
workspaces with LEED Platinum ratings and the highest standards of safety
have attracted potential occupiers. India’s commercial real estate investments
have also been the highest in 10 years with approximately $2.6 billion being
invested during the first 3 quarters.
This study has revealed India’s leasing market to be in good health and has
given investors across the globe confidence to invest in the Indian commercial
market. With complete support from India’s first REIT filing by Blackstone and
Embassy in September 2018, foreign investors are on a lookout for Greenfield
and Brownfield projects.
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