The commercial real estate segment in India has revived from the losses of the pandemic. This sector, which was significantly impacted by the lockdown, has now seen a strong pickup in demand in the last 3-4 quarters. This demand is boosted by strong economic growth, increased hiring by organisations and the return of hybrid and back-to-office working modules.
Leasing and deal activity in the office space segment has picked up and witnessed steady growth in the past 8-9 months. This stands as a bright sign, despite the forecast of a recession in Western markets looming over the economy.
Reports suggest that during 2022, commercial leasing in India’s top seven markets touched a historic 51 million square-feet mark. This is the second-best figure recorded by the sector. In the IT/ITeS-driven markets of Pune, Bengaluru, and Hyderabad, more than 50% of the total office space leased was by occupiers, in areas of 100,000 sq.ft.
This increase in the leasing of large office space indicates a core recovery, which may in the future drive the growth of the country’s commercial market. Usually, value-driven services such as R&D and GCCs are the takers for large commercial spaces. This is also a sign of India’s continued prowess in this area.
In Pune, the locales of Mundhwa, Kharadi, Hadapsar and Central CBD have progressed into the most sought-after micro-markets for commercial leasing. Strategically positioned, these areas allow seamless access to the neighbouring residential clusters.
These locations are also preferred for the convenience they offer to employees. These areas are comfortably located in the heart of already developed areas, with premium infrastructure, restaurants, hot spots, malls, schools, and hospitals in the vicinity. As a result, employees also save time and resources on commuting to faraway special zones on the city outskirts.
Tech giants like IBM, Amazon, Accenture, Google and Cognizant, Fin-techs like Barclays Bank, and Bajaj Finserv, biotech and pharma MNCs like Roche and Springer Nature Group and other leading MNCs like Smartworks, Mahindra and Godrej have all leased large spaces in Pune in the last one year.
The exponential growth of the commercial real estate sector in recent times has no doubt, been a strong pillar of the revival of the real estate industry. As industries shift from work-from-home to Hybrid work culture, the demand for flexible workspaces in Pune is expected to witness a substantial rise.
With commercial leasing peaking, now is the time to make profitable investments in commercial spaces that assure sustained growth with their returns.
Pyramid Axis ‘Grade A’ commercial office spaces are designed to take your business and investments to successful new highs. They stand as a reflection of our values of purity, perfection and panache. To know more about Pyramid Axis ‘Grade A’ commercial office spaces and Pyramid Lifestyle, visit https://www.pyramidlifestyle.com/
References:
- https://www.businesstoday.in/real-estate/story/record-large-office-space-leasing-is-sign-of-revival-realtors-375883-2023-04-03
- https://realty.economictimes.indiatimes.com/news/commercial/roches-india-arm-leases-two-lakh-sq-ft-office-space-in-pune/100579959
