Commercial Real Estate shows sluggish growth
Shubhra Tandon in Mumbai reported that the activity in large office space remained sluggish in the three months to June. The commercial real estate in Mumbai was not picking up in the period till June this year and the top six commercial real estate markets reported fewer lease transactions above 1 lakh square feet.
One deal was transacted in Mumbai in Lighthall building in Andheri which is the northern suburb of Mumbai. Netmagic, an NTT Communications Group company, has leased 2.8 lakh square feet at a rent of Rs 80 per square feet per month. Otherwise business was quite dull as major deals were not signed in this calendar year.
In total about 10.3 lakh square feet was leased but large transactions were few and far. Most of the deals were between and in the less than 25,000 square feet category.
The DTZ data showed the trends in all the metros in India. The Delhi NCR region saw just three large deals; two involved Accenture, one for 5-lakh square feet and the other 2-lakh square feet in Unitech Infospace in Dundahera, Gurgaon. A company called Edifecs is also said to have picked up 1.25 lakh square feet in DLF Silokhera in Gurgaon.
Most of the IT and ITES sector companies are takers for these large spaces and since post the recession, the companies are not expanding, the demand for commercial real estate has gone southwards.
Source- The Financial Express
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