Bengaluru contributed the highest to pan-India absorption with 25% share in Q2 2024, followed by Hyderabad and Mumbai at 20% each. Pune reported the highest quarterly growth, around 307%, in value terms whereas absorption declined by 48% in Chennai during Q2 2024. NCR also witnessed a quarterly decline of 37% during the above-mentioned period. All the cities except Chennai and NCR reported an increase in absorption on quarter and on year.

Absorption:

Note: Data for Grade A Office Space

Source: Vestian Research

 IT-ITeS sector dominated absorption with 38% share in Q2 2024, followed by BFSI and Consulting Services at 12% and 10% respectively. Flex Spaces accounted for 8% of the total absorption during the current quarter.

H1 2024 witnessed absorption of over 30 Mn sq ft, registering an uptick of 18% compared to H1 2023. As the demand for grade-A office spaces is robust across the top seven cities of India, the entire year (2024) is expected to cross the 60 Mn sq ft mark again after peaking in 2023.

Absorption reached 17.04 Mn sq ft in Q2 2024, registering an increase of 27% over the previous quarter and 23% over the same quarter a year earlier. The surge could be attributed to improved global macroeconomic scenario and India’s robust growth amid global geopolitical challenges.

Following a similar trend, new completions also increased by 17% in H1 2024 over H1 2023, reaching 23.2 Mn sq ft. Additionally, Q2 2024 witnessed a quarterly increase of 15% and a yearly rise of 10% in new completions. All the cities except Pune and Bengaluru witnessed an uptick in construction activities during the current quarter compared to the previous quarter. Moreover, Mumbai reported 3.3 Mn sq ft of new completions during Q2 2024, registering the highest quarterly rise of 230%.

Bengaluru dominated new completions with 28% share, closely followed by Mumbai with 27%. Southern cities (Bengaluru, Chennai, and Hyderabad) accounted for 57% of the total new completions reported in Q2 2024, however, the share has dropped from 63% a quarter earlier.

New Completions:

Note: Data for Grade A Office Space

Source: Vestian Research

Shrinivas Rao, FRICS, CEO, Vestian said, “Despite global geopolitical challenges, India’s office markets reported robust real estate activities during Q2 2024. The quarter has already set the tone for robust  leasing and construction activities for the current calendar year.”

Rao further added, “Real estate activities are anticipated to increase further on the back of strengthened demand from IT-ITeS and BFSI sectors. Flex Spaces are also likely to play a pivotal role in the growth of office markets in India.”

Also Read: Residential Prices in Bengaluru See 57% 5-Year Jump, Inventory Overhang Down to 8 Months

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With a vision to harness technology to build a sustainable marketplace, Ninjacart has been steadily growing, backed by several investors. The company was keen on expanding its office space in Bangalore and appointed Colliers India to identify and transact a suitable office asset. On conducting a market analysis and gaining a clear understanding of the business requirement, Colliers’ experts proposed a managed office space instead of a conventional one, given the cost-effectiveness and flexibility offered by the co-working segment.

After evaluating a series of viable spaces, a premium managed office space located within the Outer Ring Road corridor has been finalised and executed. This space operated by IndiQube, is equipped with modern-day amenities including a gym, childcare facilities, and a food court. Further, the commercial asset is in close proximity to an upcoming metro connection and will eventually provide added convenience to employees.

Focused on meeting present business needs and ensuring long-term gains and a rich employee experience for Ninjacart, Colliers successfully negotiated a fully managed 1037-seater office space with the top-tier service provider.

“Ninjacart is a fast-growing fresh produce marketplace that is run by a vibrant, driven team of young professionals. Amid supply constraints and scaling rentals in the sought-after Bangalore market, we were confident that a managed space will be best suited for the present business needs and to fetch long-term gains. Our team conducted a thorough market study before narrowing it down to a couple of commercial assets and finally identifying IndiQube as the apt office space. The space is conveniently located and equipped with amenities and facilities that will enhance the employee and client experience. We send our best to the Ninjacart team as they commence business operations from the brand-new workspace.”, says Arpit Mehrotra, Managing Director, Office Services, South & Head of Flex, India at Colliers.

Sharath Loganathan, Co-founder of Ninjacart, conveyed his contentment, stating, “The collaboration with Colliers and Indiqube proved transformative. Their exceptional professionalism, outstanding customer service, adaptability, and swift execution surpassed expectations. Such a high level of dedication is seldom encountered. Opting for Indiqube, endorsed by Colliers, proved to be a strategic decision that significantly enhanced our office space experience – it simply feels perfect.”

Aside from its core fulfilment capabilities, Ninjacart now operates in new verticals such as commerce and fintech,  all aimed at empowering agri citizens across the value chain including farmers, traders, retailers, importers and exporters. Currently, Ninjacart has a 1300+ strong team of dedicated professionals. Beyond its recent achievements, Ninjacart, currently operating in 70 locations, envisions an ambitious expansion to 200 cities and towns in the coming year.

Also Read: Colliers assists Pinnacle, in setting up first office in Hyderabad

The post Colliers transacts ~1000-seater premium managed workspace for Ninjacart at IndiQube, Bangalore appeared first on Square Feat India.

According to documents accessed by Square Feat India provided by Propstack, the lease began on April 1.

Qualcomm has leased the ground plus 12 floors in the Bagmane Capital-Angkor. The tenure of the lease is 108 months.

The monthly rent for the chargeable area is 6.21 lakh sq ft, for which the monthly rent is Rs 5.90 crore. The escalation is 15% every 36 months.

The owner of the property is Bagmane Developers Limited. A security deposit of Rs 47.25 crore is paid for the lease deal.

Also Read: Butlr Technologies Announces Partnership with Propstack for
Occupancy Sensing in India

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Bengaluru is likely to witness a surge in investment for developing premium warehousing park to meet growing demand for storage space from e-commerce and third-party logistics players, according to a white paper named ‘Ahead of The Curve – Bengaluru Warehousing’ by India Sotheby’s International Realty with inputs from India’s leading real estate data research company CRE Matrix.

The demand-supply trend of the last five calendar years (2018-22) shows that demand has outstripped new supply by far, resulting in very low vacancy levels in existing warehousing parks and a decent growth in rentals.

According to white paper data provided by CRE Matrix, the cumulative absorption of warehousing space in Bengaluru during the 2018-22 period stood at 16.34 million square feet, while new supply was 10.5 million square feet.

“Bengaluru will be in the spotlight for investments in warehouses with greater capacity for e-commerce fulfilment. Based on the anticipated rise in demand, we project that more than 250 acre of land would be required in the periphery of Bengaluru city to develop new warehousing facilities,” said Gagan Randev, Executive Director – Capital Markets, India Sotheby’s International Realty.

Another significant trend observed in the market is the notable and recent rise in market rentals within the sector.  In 2022, market rentals experienced a remarkable increase of 10%, surpassing the average rental hikes of 5-6% witnessed in previous years.

“This upward trajectory indicates a further tightening of the market. As a result, owners have gained the advantage of negotiating more favourable rental terms with new occupiers. The considerable rise of 10% in market rentals, compared to the in-place rental increase of 2% in 2022, clearly reflects this positive trend,” opined Harikesh Ananthamurthy, Senior Vice President – Capital Markets, India Sotheby’s International Realty.

He further said manufacturing, logistics players, e-commerce, and retail sectors will continue to drive the warehousing demand, with logistics players and e-commerce emerging as major occupiers.

Mr Randev added: “The involvement of larger organized players in the sector has driven a shift towards automation, IoT integration, enhanced warehouse management systems, security measures, and a focus on creating greener and sustainable built environments.”

Prominent players such as All Cargo, Welspun, IndoSpace, Prologis, Panattoni, RMZ, The House of Hiranandani, Lodha (Macrotech), ESR, CapitaLand, Morgan Stanley, Horizon Industrial Parks, and Greenbase are aggressively expanding their presence in the warehousing segment. Partnerships between funds like Blackstone and Prologis with strong domestic players have overcome land challenges and facilitated the acquisition of large parcels in an organized manner.

The paper further said the demand for land in Bengaluru is expected to be evenly distributed among different clusters, facilitated by the city’s expansion and peripheral ring road, allowing for seamless transfer between clusters and consumption centres.

India Sotheby’s International Realty said organized large players are acquiring land with long-term demand in mind, facing challenges in availability and conversion. Valuation depends on expected earnings, construction costs, and approval expenses. The sector sees a drive towards automation, IoT, better warehouse management, security, and sustainability.

Landowners, it added, often have high expectations and asking prices, and valuation depends on anticipated earnings from warehousing rentals, construction costs, and approval expenses.

Also Read: Bengaluru’s Key Areas See Housing Rents Grow Over 20% Y-o-Y in Q1 2023, Beat Other Cities

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52% of respondents stated that they have plants at home which make them happy. Another 32% of respondents are of the view that plants are fundamentally important for them both inside and outside their homes.

The recently launched, Godrej Properties study, Home Livability Factors underscores the fundamental shift in homebuyers’ preferences with the onset of the Covid-19 pandemic and the significant alterations that it has brought about in their preference for residential apartments.

Homes surrounded by trees and greenery also help people to stay healthy and maintain mental well-being. This seems to be a major reason for 3 out of 4 respondents in Bengaluru are of the view that home is a place to maintain health and mental well-being.

The survey also revealed that residents of Bengaluru prioritize family living as 51% of respondents feel that a home is a place to live well as a family unit. They are second next to Kolkata wherein 59% echoed similar preferences. Around 71% of respondents from Bengaluru have also placed hobbies and passions as a fundamental aspect of their lifestyle change post the Covid-19 pandemic.

Pramod Bisht, CEO South Zone, Godrej Properties , said, “People have become environment conscious. They aspire to live in homes that are surrounded by open spaces, complimented by ample greenery and serene surroundings. At Godrej Properties, we understand the native needs of our homebuyers and craft bespoke residential spaces surrounded by greenery and paved access to open spaces. We design smart homes that are not only technologically evolved but offer contemporary facilities in terms of safety, security, and well-being thus enhancing the overall livability quotient.”

The study also brought to the fore that the pandemic-induced lockdown has influenced 79% of respondents to lead a sustainable lifestyle. Of these, 49% of them stated that they have started laying impetus on energy conservation, avoiding wastage of food and water. The remaining 30% of them claimed that they are absolutely conscious of their daily use of water and energy and have adopted recycling.

The study also posed reactions to how their work schedule reflected in their homes. At least 67% of respondents from Bengaluru claim that they have made some adjustments to work from home.

Data findings are a part of the research study Home Livability Factors unveiled by Godrej Properties Ltd. (GPL) which surveyed respondents from seven cities of Pune, Mumbai, Delhi, Bengaluru, Kolkata, Ahmedabad, and Chennai.

Also Read: Godrej Properties purchases 89 acres of land in Khalapur

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