According to a JLL study, India’s relatively new and inexpensive office space should be attractive to corporate occupiers.
Investment in office space this year could surpass Rs 17,000 cr in 2015 in India, according to a JLL India. Delhi-NCR and Mumbai had attracted the major chunk of this investment.
The study further said India’s relatively new and inexpensive office space should be attractive to corporate occupiers. Moreover, investors should also look at India if they are looking to buy core/ life expectancy.
The latest JLL survey on the average age of the most expensive office space in 10 Asia Pacific cities reveals that Beijing, Shanghai have the newest office stock followed by Tokyo, Mumbai, Singapore, Delhi-NCR, Seoul, Sydney, Melbourne and Hong Kong.
The survey has compared 30 buildings with the highest rents in each city, taking into account an equal number of buildings in Delhi’s central business district (CBD) and secondary business district (SBD), with the rest in Gurgaon. The Mumbai basket has most buildings of Bandra-Kurla Complex (BKC), with the rest in SBD-Central and the CBD.
The recent construction boom in China has helped Beijing and Shanghai have the newest office stock (stock-weighted average age of 8 years). Tokyo’s stock averages just 8.4 years, a result of recent and ongoing re-development projects, especially after the 2011 earthquake.
Singapore and India are both 11 years old while Seoul is older at 14 years. In Singapore, a fourth of the current grade-A space in the CBD has been built since 2010, mainly due to new supply in Marina Bay.