Office space demand grows 58% in Sept qtr: JLL

Office space demand in India saw a net absorption of 9.3 million sq ft in the July-September quarter this year, says a report.
This is nearly 58 per cent higher than the year-ago period, according to the report by property consultant Jones Lang LaSalle (JLL).
"The Indian monsoon months are synonymous with low activity in real estate, but this year witnessed considerable amount of activity in the office sector," JLL India COO Business and International Director Ramesh Nair said.
He said that led by Prime Minister Narendra Modi, the new government which came to power with majority in May, has infused renewed confidence and faith in the corporate world.

Market activity, measured in gross leasing volume (GLV), was also high at 10.62 million sq ft, clearly indicating that there are better days ahead for commercial realty, Nair added.
According to JLL India, grade A office leasing market is dominated by US multi-national companies, which account for more than 45 per cent of leased space).

These companies, along with Europe-based MNCs account for 15 per cent of share in office space leasing, are once again very bullish about growing their businesses in India after the new government took over.
"Indian companies, accounting for 30 per cent of office space leasing, are slightly behind in executing their growth plans; however, we know that several of them are in various stages of their property hunt," the report said.

Bangalore and Delhi NCR led the revival with the leasing of almost 3 million sq ft and 2.5 million sq ft space respectively. Another city that rose on the office realty map was Kolkata, leasing more than half a million sq ft from virtually no leasing during the same time last year.
Mumbai, Chennai, Pune and Hyderabad maintained their quantum of leasing space with minor variation, the report said.
With a healthy space demand list on hand from various large companies, it is going to be hard for corporates to find the right assets at the right locations.
"Next year, we expect only 22 million sq ft of office space to be ready at the right locations against the demand forecast of just under 30 million sq ft in 2015," Nair said.