Resurgence in Commercial Real Estate Demand as Recession Fades
With the recessionary period nearing its conclusion, a notable surge in demand for commercial real estate projects, encompassing both office and retail spaces, has been observed by businesses and retailers.
Significant Increase in Leased and Sold Commercial Space
Ravi Ahuja, Executive Director for Development Services at Cushman and Wakefield India, highlighted the substantial increase in commercial activity. In major metropolitan areas such as Mumbai and the Delhi-National Capital Region (NCR), firms leased or sold approximately 9.2 million sq. ft. of commercial space within a mere three-month period. This represents a stark contrast to the 5.8 million sq. ft. recorded during the April-June 2009 timeframe.
"In many cities including Mumbai and Delhi-National Capital Region (NCR), the commercial space leased out or sold by the firms is about 9.2 million sq. ft within just a time span of three months, while the space leased and sold during April-June 2009 was just 5.8 million sq. ft."
Anticipated Growth in Retail Space Availability
The retail sector also experienced considerable growth in available space. Last year, the available retail space was recorded at 6.3 million sq. ft. This year, projections indicate a significant increase, estimating approximately 16.4 million sq. ft. of retail space will be available. Jones Lang LaSalle Inc., a prominent real estate consultancy, predicts that 8.9 million sq. ft of this space will be absorbed this year, a substantial rise compared to the 4 million sq. ft absorbed in 2009.
Developers Report Increased Demand
Several prominent real estate developers corroborate the observed increase in property demand. Companies such as Assotech Ltd, Wave Inc., Anant Raj Industries Ltd, and BPTP India Ltd have all reported improvements in market activity and buyer interest, further substantiating the positive trend in the commercial real estate sector. These positive signals suggest a robust recovery in the commercial property market as the effects of the recession diminish.