Bengaluru – CBD
CBD micromarket in Bengaluru witnessed the maximum rental jump of 25% YOY which can be attributed to its centralized location, increasing demand and low availability of ready to occupy Grade A space. Total leasing activity in CBD in 2017 was recorded at 1.4 million sq ft, contributing to 9% share in total leasing volume.
Bengaluru – Bannerghatta Road
With limited availability of vacant stock and lack of upcoming supply, the rental rates in Bannerghatta Road increased by 18% YOY. This micromarket enticed the interests of occupiers from IT-ITeS sector and coworking operators in 2017.
Bengaluru – Electronic City
Electronic city in Bengaluru recorded an increase of 17.6% YOY in 2017. The growing occupier interest in this micromarket is due to readiness of quality Grade A spaces at competitive rents and availability of large floor plates. This micromarket attracted few large deals in 2017 such as Siemens and Syngen International.
Delhi – Aerocity
As a direct outcome of preference among occupiers, Aerocity micromarket recorded a 17% YOY increase in rents. We expect Aerocity to remain as a preferred micromarket among occupiers' due to its locational advantages and availability of Grade A stock. DIAL (Delhi International Airport Limited) has started allocating land parcels in phase II of Aerocity for mixed-use development. However, it will take at least three to five years for new building to materialize. Hence, in our opinion, rents should rise by a further 8-10% in 2018 due to the lack of a visible supply pipeline over the next three years
Pune – Kharadi
One of the fastest growing micromarket Kharadi in Pune witnessed a rental growth of 14.6% in 2017. With significant upcoming supply under various stages of construction in this micromarket, we expect the Kharadi to continue to be an active micromarket in 2018 and the supply should be followed by demand due to the availability of large talent pool.
Pune – Hadapsar/Fursungi
Hadapsar market is emerging due to few notable projects such as Magarpatta city and other projects offering large floor plates. This micromarket being an IT-ITeS destination with active residential catchment nearby, observed a 12.6% YOY growth in office rents.
Bengaluru – EPIP/Whitefield
Owing to low vacancy rate and shortage in supply, EPIP/Whitefield micromarket witnessed a rental increase of 11% YOY. However, we expect that the rents should stabilize over upcoming quarters considering the robust pipeline of Grade A supply.
Chennai – OMR Pre-Toll
OMR Pre-Toll micromarket in Chennai witnessed a raise in rental values to about 10.8% YOY in 2017. Regardless of increasing rents, this micromarket continued to garner maximum occupier interest representing 32% of the total transaction volume in the city. In our opinion, considering the shrinking vacancy rates coupled with rising rents in OMR pre-toll, occupiers' focus is likely to shift towards OMR post-toll over next 3 years due to the significant supply pipeline
Pune - Aundh
Aundh micromarket in Pune saw a 9.6% YOY increase in rents in 2017. With spaces taken up my various IT-ITeS and manufacturing companies, we expect this micromarket to be one of the key developing micromarkets of Pune in 2018.
Bengaluru – Outer Ring Road
The most sought-after office destination in Bengaluru, Outer Ring Road furnished maximum volume of absorption of 46% in 2017. Due to the ever-increasing demand and low vacancy, this micromarket witnessed a rental increase of 9.4%.
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