Global real estate agent said earlier this month that the office rentals will be stable in major Indian cities (including Bangalore) during the first half of 2014. The second half of 2014, however, would see an increase in demand, and hence rent.
In its report on India, global integrated property services company Demand and Trends (DTZ) said “Most corporates are expected to firm up plans for expansion in the next few months with the overall take-up forecast to grow in 2014, especially in the second half of the year.”
“Consequently, office space take-up is projected to reach 28.9 million sq. ft. in 2014, a growth of 7 percent,” added the report.
The IT/ITeS sector would be responsible for most of this demand (40 percent), while manufacturing and BFSI sectors would be the next biggest contributors, respectively.
In terms of cities, the report predicted that Bangalore would continue to lead as the largest contributor to office space demand.
One thing that real estate agents will have to look out for in this phase, according to DTZ India Research Head Rohit Kumar, is that more and more office space occupiers insisted on seeing and verifying the proof of strict adherence to legal, safety and environment norms.