Commercial Real Estate on the Fast Track

January 25, 2007	(1 votes, average: 3 out of 5)  Loading ...
Print This Story   Email This Story Subscribe Newsletter

India’s premier IT city Bangalore continues to occupy the most commercial space amongst all other metros in the country. According to real estate consultant Cushman and Wakefield, of the 40 million sq. ft commercial space absorbed in the country, Bangalore accounts for 33.75%, or 13.5 million sq. ft.

Chennai takes second position with 6.5 million sq. ft commercial space absorbed in 2006.
Close on its heels at 6.4 million sq. ft. in 2006, as against just 3.2 million in 2005, the NCR recorded the maximum growth – in fact the area doubled in a year’s time. In 2007, 3.5 million sq. ft commercial space will be added, taking the total to 9.9 million sq. ft. Rental values increased with this increased space, going up by as much as 60%. The IT and ITES sector have led the growth in Delhi, Noida and Gurgaon..

The country’s financial capital Mumbai occupies cramped commercial space on 5 million sq. ft. area, followed by Hyderabad at 3 million sq. ft., Pune at 2.6 million sq. ft. and Kolkata at 1.5million sq.ft.

Bangalore has the largest number of real estate developers, which partly is the reason for more commercial space being created and let out. Commercial spaces include the IT and ITES corporate office segment and the non-IT and ITES corporate segment. The latter comprises insurance, banking and corporate houses.

New commercial spaces are driven by the expansion in the IT industry, and the booming retail market. The total retail space in India is set to go up to 90 million sq ft in 2007, according to a report ‘Malls of India’. More hypermarkets, more franchises, and a spreading out to Tier II cities, as per the report on retail markets in India by Ernst and Young, will see the retail space segment leading the way for commercial property in 2007.

News Published Under:   Bangalore |

Comments