suburbs and a preference of leasing rather than outright purchase, is seen on the rise. This is leading to abundant cost-effective office spaces coming up in the peripheral areas of cities, which are seeing good demand as well as absorptions.
“Going forward, demand is most likely to be concentrated in peripheral micro-markets of India’s leading cities, owing to the abundant availability of cost-effective, Grade A office space options. Occupiers belonging to the IT/ITeS, banking/financial services and pharmaceutical sectors are likely to drive the demand for office space; and contribute significantly to overall office space absorption levels,” says Anshuman Magazine, chairman and managing director, CBRE South Asia.
Interestingly, the share of lease transactions for less than 10,000 sq ft has risen to 39% in Mumbai, in the first nine months of 2013 compared to 2012. Meanwhile, the share of transactions above one lakh sq ft, have remained stagnant at 11%, data from Jones Lang LaSalle (JLL) India shows.