As India Inc slowly limps back to recovery, the commercial real estate sector is seeing feeble signs of rise in demand. According to property consultants, demand showed 19 per cent increase in the second quarter (July-Sept) this year over the comparable period in the previous year.
In Mumbai, rentals stabilised across the city. The metro leads in office space demand with a growth of over 116 per cent quarter-on-quarter (q-o-q), while Bangalore witnessed the highest demand in the quarter with 2.3 million sq ft of office space, followed by Mumbai at 1.2 million sq ft and Chennai at 0.98 million sq ft.
However, the gap between supply and demand increased to over 130 per cent (from 50 per cent) in the quarter under review, increasing the average vacancy across major cities in India to 17 per cent from the previous quarter’s 13-18 per cent, according to a report by property consultancy Cushman and Wakefield.
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