Infographic: Changing trends in commercial real estate

Leasing growth could be impacted as occupiers adopt a cautious expansion strategy IN 2017

In the past three years, commercial real estate in India saw a robust streak as net absorption in the top eight cities consistently crossed 30 million square feet (msf). Looking ahead in 2017, leasing growth could be impacted as occupiers adopt a cautious expansion strategy. This is because of uncertainty in global markets due to the changes in US trading and immigration policies, a slowdown in the Chinese economy and Brexit. 
 

Cushman & Wakefield Research forecasts that the average commercial real estate supply in the top Indian cities will be 40 to 45 msf per year until 2020, while the average net absorption will be 32-35 msf. Three major forces are likely to disrupt the way commercial office market functions: Changes in economic policies of major economies in the world, changing ownership pattern and the shift towards new commercial tenancy models such as co-working.