Total office space take-up in 2014 saw a 10% year-on-year rise.
Enhanced levels of activity in corporate real estate transactions led to a total office space occupation of more than 33 million sq ft during 2014. This activity was led for the most part by Bengaluru (37%) and the National Capital Region (NCR) (24%).
Total corporate space occupation in the fourth quarter of 2014 was more than 9 million sq ft — the highest quarterly levels over the past three years. Such transaction levels echoed the overall sense of optimism that prevailed in the Indian commercial real estate market in 2014.
The demand for commercial office space remained sustained throughout the year; and year-on-year space take-up increased by around 10% over 2013.
The year also saw significant investor interest in completed and well-leased core commercial assets and IT parks.
This willingness to invest in the country — especially on the part of multi-national organisations — indicates an increased confidence in the India growth story in general and the government in particular.
Except for Mumbai and Hyderabad, all leading cities witnessed an increased demand for office space during 2014 from corporate occupiers.
While a rationalized supply and increased focus on committing space in under-construction projects in Mumbai led to a drop in transaction activity.
Also, a subdued political climate in Hyderabad during the first half of 2014 contributed to a similar drop.
Owing to available quality office developments with larger floor plates, occupier preferences remained focused on the dominant office districts of Gurgaon, Than e/Navi Mumbai, Whitefield ( Bangalore), Magarpatta (Pune) and the IT Corridor in Hyderabad, among others.
Among the leading sectors dominating office space requirements during the year, the IT/ITeS sector continued to account for a major portion, followed by banking/financial services.
Other prominent sectors included manufacturing and engineering, telecommunications, construction, consulting and research, healthcare and pharmaceuticals.
Additionally, cities such as Delhi and Bangalore attracted a healthy demand from the e-commerce segment during the fourth quarter.