Despite headwinds in domestic economy, realty will grow: Savills

The trinity of Bengaluru-National Capital Region-Hyderabad has set a new office space uptake benchmark, as it reached 15.6 million square feet (mn. sq. ft.), 10.9 mn. sq. ft. and 9.5 mn. sq.ft. respectively during calendar 2019, said a study by international property consultants, Savills India.

As per the study, markets including Mumbai, NCR, Bengaluru, Chennai, Pune and Hyderabad drove the growth. Office space demand in 2019 bettered the previous historic benchmark of 2018 by 22% amounting to a gross absorption of 57.72 mn. sq.ft.

Being the key drivers, IT and ITeS accounted for 46% of the growth in Grade A office spaces across the country.

On the outlook, the company said, year 2020 too was likely to be marked with strong demand for quality commercial office space driven by several factors like expansions, consolidations and upgrades to employee centric workspaces.

Anurag Mathur, CEO, Savills India said “The commercial segment, especially, the office space market is going from strength to strength, beating its own record of 47.3 mn. sq.ft. in 2018, to set a new one at 57.7 mn. sq.ft. in 2019. Despite headwinds in the domestic economy, we expect this growth to trend in 2020 as well. This should hold the overall Indian real estate industry in good stead in the long-term.”

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