Prestige Group

City Retains Top Position in Office Leasing

Saturday 9th January, 2021

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City Retains Top Position in Office Leasing It accounts for 34% of overall volumes across the top eight markets, as per a Knight Frank report Sobla.Khan@timesgroup.com Bengaluru: Bengaluru retained its premier position in the commercial space as the city registered the highest office leasing volume in the country in the second half of 2020 despite the Covid-19 outbreak and subsequent economic slowdown. Bengaluru recorded offlce leasing of 7.54 million sq ft, accounting for 34% of the overall volumes across the eight markets in India for July-December 2020. For Q4 2020, the city recorded 6.4 million sq ft of gross transactions, amarked improvementagainst1.15million sq ft in Q3 2020. The quarter also surpassed the cumulative performance of the flrst three quarters of 2020, mentioned in thelatest Knight Frank report. "Bengaluruhasalways been a premier commercial market and a hotspot of capital investment in the country," said Shantanu Mazumder, senior branch director, Bengaluru, Knight Frank India. "Thepre-committed activity remained strong with 2.47 million sq ft of space being taken up in Q4 2020, including large dealsby ANI Technologies, Google and Amazon." In terms of new office completions, the city registered 5.42m sq ft of Supply mn H22020. The rent Mm the city, which was escalating early this year, softened in Q4 2020. "Developers ensured quick deal closures in Q4 2020. In particular, Bengaluru has the benefit of existing low vacancies that will enable absorption of muchof the upcoming supply," Mazumder said. "The city also has the advantage of relatively lower rentals than global markets,andalarge talent poolshould help in better than expected market revival as global economies move towards normalcy. Golng forward, the city is expected to experiencearise in officerental values in 2021." The residential market of Bengalurualsorecordedan uptick in home sales. Bengaluru's residential market recorded home sales of 1,402 Units in H22020 and 23,576 units in the calendar year 2020. The city reported new launches of 9,123 home units in H2 2020 and 19,929 home units in 2020. "The Covid-19pandemic presented us with the unprecedented times, but every crisisis an opportunity tolearn and grow. Everyone, including our customers, has adapted, evolved and innovated during these times," said Irfan Razack, CMD. Prestige Group. "Since our virtual project launches in August, we can conftdently say that real estate in India will witnessa steady growth as both resident Imdians as well as NRIs are Jookingto Invest." Residential sales dipped in Q2 2020 in Bengaluru as lockdowns and Covid-induced market uncertainties stalled business activity in Bengaluru. However,sales revived marginally in Q3 2020 On account of the pent-up demand and the new demand set in motion as lockdown relaxations restored business activities.