Leasing activity in the commercial real estate segment rose 18 percent on a year-on-year (YoY) basis during January-March 2018, to 11 million square feet across the country, a report said here on Monday.
“Commercial real estate leasing segment recorded 11 million sq ft of pan-Indian gross absorption in Q1 2018, representing an 18 percent YoY rise in demand,” said Colliers International’s report, ‘Asia Market Snapshot – Q1 2018’.
Colliers International Group is a global real estate services company listed on the NASDAQ.
The report further said the office market segment is becoming more organised with developers being strategic in their development plans and upgrading their office portfolios.
“About nine million square feet of new Grade-A office space reached completion across major cities in Q1 2018,” it said.
The report also observed that the residential property market in the country is on the path of revival and the commercial and warehousing sectors are likely to flourish in 2018.
“With the after-effects of RERA (Real Estate Regulatory Act) and GST (Goods and Services Tax) settling in, we are starting to see the initial signs of a gradual revival in the residential sector.
“A gradual uptick is being witnessed even in the sales numbers of some of the developers, who have a good track record of delivery over the past few years,” said Gagan Randev, National Director, Capital Markets and Investment Services at Colliers International India.
He added: “Demand is primarily being seen from end-users only. Grade-A commercial, quality retail (mall) space and warehousing continues to evince strong interest.”