Thursday, April 10, 2008
Mumbai tops global rentals - joins New York and Tokyo
Nearly 40 million square feet of office space was added in India last year, with the Bandra-Kurla Complex in Mumbai commanding the highest rentals even as the metro joined New York and Tokyo as the most expensive realty markets in the world, says a new study.
"The year 2007 will be remembered for the increased interest in understanding the Tier II and Tier III markets of India," said Anshuman Magazine, chief of South Asia for the Los Angeles-based realty consultancy CB Richard Ellis.
"Occupiers have been looking closely at these non-metro markets that offer lower costs and possibly improved employee retention, compared to the mature markets," Magazine said, while releasing the story on India's real estate industry.
"Such was the frenzy to release supply to a 'hot' market that some micro-markets like the IT corridors in Chennai saw its office supply in 2007 multiply some six times from the new supply in 2006."
The study said thanks to the addition of 39 million square ft in new office space in 2007, the overall commercial office stock in the country increased to 53 million square feet, taking the total stock to 190 million square feet.
The developers ramped up their supplies mas sively because of spiraling rentals that also lured private equity funds into the realty industry, said the study by the consultancy that has some 300 offices worldwide.
"The rental trend has continuously risen this year, with significant rental escalations in markets like Gurgaon in the National Capital Territory and Outer Ring Road in Bangalore," it said.
To read the full article, click here...
To read the ePaper, visit: http://www.newsindia-times.com
"The year 2007 will be remembered for the increased interest in understanding the Tier II and Tier III markets of India," said Anshuman Magazine, chief of South Asia for the Los Angeles-based realty consultancy CB Richard Ellis.
"Occupiers have been looking closely at these non-metro markets that offer lower costs and possibly improved employee retention, compared to the mature markets," Magazine said, while releasing the story on India's real estate industry.
"Such was the frenzy to release supply to a 'hot' market that some micro-markets like the IT corridors in Chennai saw its office supply in 2007 multiply some six times from the new supply in 2006."
The study said thanks to the addition of 39 million square ft in new office space in 2007, the overall commercial office stock in the country increased to 53 million square feet, taking the total stock to 190 million square feet.
The developers ramped up their supplies mas sively because of spiraling rentals that also lured private equity funds into the realty industry, said the study by the consultancy that has some 300 offices worldwide.
"The rental trend has continuously risen this year, with significant rental escalations in markets like Gurgaon in the National Capital Territory and Outer Ring Road in Bangalore," it said.
To read the full article, click here...
To read the ePaper, visit: http://www.newsindia-times.com
Labels: Bandra-Kurla Complex, expensive office markets, global rentals, highest rentals, india, MMumbai tops, New York, Tier II and Tier III markets of India, Tokyo
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