A report published on Tuesday suggests that the Indian real estate sector is poised to encounter an oversupply of office rental space, potentially leading to a further decline in rental prices. The findings were released by Jones Lang Lasalle Meghraj (JLLM) in collaboration with the Confederation of Indian Industry (CII), indicating that vacancy levels in India are projected to escalate from 17.2% in 2009 to approximately 20% by the conclusion of 2010.
The report highlights that during the first quarter of 2010, several major Indian cities have witnessed an uptick in the volume of lease transactions. Approximately a million square feet of leases have been recorded in key cities, including Delhi, Hyderabad, and Mumbai.
Looking ahead, the report forecasts that, within the next three quarters, many micro markets are likely to hit their rental lows. This denotes that even as the balance of power shifts in favor of occupiers, the opportunities available to them are progressively shrinking with each quarter that passes.
Entitled "The Seven Stars of India: India's Best Performing Micro Markets for Occupiers," the report makes predictions regarding the real estate rental market across cities such as Mumbai, Delhi, Bangalore, Chennai, Kolkata, Pune, and Hyderabad.