IT firms set to drive office leasing segment Report
Thursday, March 5, 2020 IST
Office space leasing volume touched an all-time high of 60.6 million square feet in 2019
The sentiment for office leasing segment has been high due to strong performance and firm rental values backed by a surge in leasing activity by IT firms and it is expected to remain 'optimistic' going forward, according to a new report by Knight Frank-FICCI-NAREDCO titled 'Real Estate Sentiment Index Q4 2019 (October – December)'.
Office space leasing volume touched an all-time high of 60.6 million square feet in 2019. New completions also increased by 56% year-on-year in 2019, to 61.3 million square feet, marginally surpassing demand, the report said.
Real estate stakeholders have continued to express an optimistic outlook for the office sector for the first half of 2020. This is backed by the tremendous growth that the India's office sector has been witnessing in the last few years.
The office market outlook for the fourth quarter of 2019 is also expected to be positive. Stakeholder sentiment regarding the outlook for office leasing remained strong, with 88 percent of respondents opining that leasing activity will either improve or remain the same, the report said.
The outlook for new office supply remained positive, with 95 percent of the stakeholders expecting supply to remain same or increase across geographies, it said.
Stakeholders' outlook with regards to future office rental appreciation also remains positive, with 91 percent of the stakeholders expecting rentals to either remain or even appreciate in micro markets with high demand.
"The stakeholder sentiments for office segment has been high due to strong performance and firm rental values allowing investors to make mid to long term investments with healthy rental incomes. Further, as we see, the revival of the Information Technology segment in India in the last few years has been creating strong demand for quality office space. India is now fast becoming a centre of high-end IT services and engineering with data centres, R&D centres and other important functions being based within the country," said Shishir Baijal, Chairman and Managing Director, Knight Frank.
Related Topics
Trending News & Articles
Simple tips to help you design your kitchen on a budget while avoiding any structural changes.
Recently posted . 3K views . 0 min read
Have you seen or been one of those people who toss garbage out of your car window on the roads? Well, if you're travelling to Karnataka then you're going to...
Recently posted . 3K views . 1 min read
However, a picture apparently from this raid is doing the rounds and it has caught a lot of attention. The picture shows a cupboard filled with wads of cash.
Recently posted . 3K views . 1 min read
When do upper middle-class urban youngsters start thinking of themselves as poor?
Recently posted . 3K views . 0 min read
More in Real Estate
In the video, the lioness is seen walking on the mud road with two cubs following her.
Recently posted. 1K views . 0 min read
Chikoo Parlour sells sweets, toffees, milkshakes and ice cream in their outlets—sourced from directly from farmers!
Recently posted. 1K views . 0 min read
The image was clicked by photographer Rodrigo Kunstmann.
Recently posted. 1K views . 0 min read
Recently posted . 3K views
Recently posted . 3K views
Recently posted . 2K views
Recently posted . 2K views
“Our ancestors built and lived in homes that served all their needs. These houses were well ventilated while we need ACs now. Almost three generations would...
Recently posted. 2K views . 1 min read
This is how the professionals get trapped into SISI - Single Income, Single Identity A "mouse" was put at the top of a jar filled with grains ...
Recently posted. 2K views . 4 min read