Office space vacancies rise in India | 28 November 2013
Vacancy rates within the Indian office space market are rising, with one-fifth of all offices empty at present.
Bloomberg.com reports that this trend is particularly evident in New Delhi and Mumbai, where there is considerable choice for either would-be business investors or businesses seeking to expand their operations.
With demand lower than usual, institutions planning to move now have greater freedom and rental rates may drop – something which could entice more investors into the region. In fact one of the area’s largest developers, RMZ Corporation, believes that the IT industry in particular is still keen on acquiring more office space.
RMZ Corp is feeling so positive that it is even building new office space just outside the main business region, in Bangalore – which makes sense given that Knight Frank suggests on firstpost.com that businesses are choosing these more remote locations due to lower rental rates.
It also has plans to invest in existing properties, with RMZ’s managing director, Raj Menda, commenting: “We are on a terrific acquisition spree.”
What’s more, wealth fund CIG Pte intends to investment millions of dollars in Indian commercial real estate, so RMZ Corp may be onto a good thing. Whether or not demand does indeed rise remains to be seen but there are some encouraging signs in the market.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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