An unexpected rise in demand for offices in the Indian city of Bangalore has resulted in a flurry of movement on building sites as contractors are working hard to complete delayed commercial projects.
Several funds are actively looking to invest in India and business confidence is expected to improve, which is expected to drive demand even higher.
Developers, including Unitech, Godrej Properties, and DLF are moving forward on projects that had been left on the back burner for some time.
Two blocks of DLF Park in Chennai, which had been put off for over two years, are now going ahead and are expected to be ready by Q1 of 2016.
Mantri Developer’s Cosmos project, located in Hyderabad is also going ahead and will be ready by the autumn of this year after being delayed by 12 months.
Sanjay Dutt, the executive managing director for South Asia at Cushman & Wakefield, stated recently that there has been an increase in office absorption in H1 this year and it is expected to be higher in the second half.
The property consulting firm says that about 21 million square feet of commercial space had been delayed over two or three years due to developers slowing down construction in cities like Mumbai, Hyderabad, Pune Chennai, and the National Capital Territory of Delhi. These projects are expected to be completed in 2015-2016.
Amit Grover, the national head of office business at DLF, stated recently that the new government and demand from the IT outsourcing segment have contributed to the positive outlook in the market. The firm is looking at new projects and investments in commercial property due to the increase in rentals and the “absorption of existing stocks.”
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