Office Market

Inflows into office sector up 41% YoY to $900 mn. Key institutional investors signing strategic deals to boost their presence, expand their office portfolio in India

Rentals may not, however, appreciate in the near term due to considerable supply in a muted demand environment

According to industry reports, southern cities, especially Bengaluru, Chennai and Hyderabad, are emerging as leading hubs in office space leasing owing to robust demand from tech and flex players

Embassy Office Parks REIT will invest around Rs 2,200 crore in the next four years to develop premium workspaces as it sees tremendous growth potential in office market despite global recessionary concerns, its CEO Vikaash Khdloya said. In an interview with PTI, he said the office demand in India would remain strong as large global companies want to open offices in India because of the huge availability of a cost-efficient talent pool and cheap rentals for premium workspaces. This trend would only strengthen amid global recessionary fears, which will lead to increased outsourcing of work to India, Khdloya said. Bengaluru, which is its core market with a significant presence, is leading the resurgence of India's office market that suffered a setback during the COVID pandemic, he added. Embassy Office Parks REIT is India's first Real Estate Investment Trust (REIT) sponsored by global investment firm Blackstone and Bengaluru-based realty firm Embassy group. It has a completed portfoli

Study says in Jan-Sept 2021, office markets had incremental activity of 13% by volume and 6% growth in new office completion over same period last year

The consultant noted that the main southern office market has overtaken other regions in terms of new supply, net absorption, and even rental growth

In the APAC region, industrial investment share of commercial transaction volumes increased by 50 per cent in 2020

In particular, it pointed out that Bengaluru has the benefit of existing low vacancies that will enable absorption of much of the upcoming supply

Bengaluru has low vacancies that will enable absorption of upcoming supply. Its rentals are lower than global markets and its large talent pool should help quicker market revival

Consultants and developers say next year is also going to be bad for home developers - prices are expected to remain stagnant and sales to move only slowly

The findings are part of Property consultant Knight Frank's 'Asia-Pacific Prime Office Rental Index Q4 2017' report

It is Allianz's first real estate transaction in the country and was conducted by Allianz Real Estate

Down from sixth in CBRE's previous bi-annual survey