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Office Space Absorption Rises to 10.6 Million Square Feet in September Quarter 

Mumbai: Office space absorption during the July-September period increased marginally to 10.6 million sq ft compared to the previous quarter, with Gurgaon witnessing the highest leasing activity, says a survey.

According to property consultant Colliers International, office market sentiment remained positive, with over 10.6 million sq ft of absorption recorded in the third quarter of 2015, marginally up from 10.5 million sq ft in the April-June quarter.

During the quarter, Gurgaon marched ahead in terms of office space leasing with 23 per cent share, followed by Chennai (20 per cent), Bengaluru (18 per cent), Mumbai (15 per cent), Noida (11 per cent), Pune (9 per cent), Delhi (4 per cent) and Kolkata (2 per cent).

The report further said rents remained stable across market during the third quarter, except for few micro markets in cities like Gurgaon, Bengaluru and Pune, where average rents increased by two per cent on quarterly basis. 

Likewise, capital values remained stable across cities. 

More than 55 million sq ft of Grade A and Grade B office space was available for lease/fit-out in these eight major cities of India.

Most of this available stock was located in cities like Gurgaon at 26 per cent, followed by Mumbai and Noida at 18 per cent each, Chennai and Bengaluru at 13 per cent each, Pune (9 per cent) and Delhi (3 per cent). 

"Office market recorded around 30 million sq ft of office absorption during January-September 2015, which is about 11 per cent more than the last year figures of 27 million sq ft for the same period. With a number of deals at an advance stage, we anticipate momentum in office market to continue," it said.

The report further noted that cities like Bengaluru, Gurgaon and Mumbai will witness maximum office uptake in the coming quarter.


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Realty Trends

Home prices near most-affordable levels in over 30 years: HDFC


Home prices may have been on an upward spiral for many years, but the cost of owning a house in India remains near the most affordable level in over three decades, shows data compiled by mortgage giant HDFC Ltd.

The average price of a home, purchased with a housing loan, rose to over Rs. 45 lakh in the 2012-13 fiscal year -- marking the fourth consecutive year of uptrend from about Rs. 25 lakh in the year 2008-09, HDFC has said in a presentation.

However, factors like an even greater surge in the personal income levels, tax incentives and lower interest rates, have resulted into houses becoming more affordable to purchase, it said.

 

 

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India Property Investment Gyan

Major schemes for affordable housing to be modified: Girija Vyas


NEW DELHI: Major schemes meant for providing affordable housing to urban poor will soon be modified to make them more people-friendly, the government said today and invited the private sector to contribute more actively in this area. 

Speaking to reporters here, Housing and Urban Poverty Alleviation (HUPA) ministerGirija Vyas today said her ministry is modifying all the major schemes including the Rajiv Awas Yojana (RAY), Rajiv Rinn Yojana and the, Affordable Housing in Partnership scheme and added enormous budgetary support has been earmarked during the current plan period. 

Secretary HUPA Arun Kumar Misra told reporters that a fund of Rs 35,000 crore had been allocated to the ministry for the implementation of three major schemes, including RAY, which was being run in as a pilot project earlier under 12th five- year plan. 

He said the ministry would require approval from the cabinet for the implementation of these schemes and efforts would be made that through these funds 2 million affordable houses are encouraged. 

He said that in addition to the central government funds, banks and credit institutions would be providing funds for construction of affordable houses. 

Vyas said that with urbanisation, the number of urban homeless and area under slums had grown. 

Vyas said there was a need for private developers to develop economic models to foster affordable housing for economically weaker sections and lower income group households in urban areas as government efforts in this direction needed to be supplemented. 

Vyas also said a technical group, set up by her ministry, had shown that out of 18.78 million housing shortage in the country, 96 percent shortage is in EWS and LIG category and for this huge investments and private sector participation were required. 

Misra said the group set up by the ministry has suggested incentives for the affordable housing sector included concessions to development-related charges and service taxexemptions. 

It also sought direct tax rebates for affordable housing projects and inclusion of the sector in the 'infrastructure facility' he said and added the task force had felt that governments need to still provide direct capital grant support to affordable housing projects. 

Misra said that in the symposium held today where states, experts and private sector representatives were present, there was unanimity on many of the suggestions.

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Green Property- Eco Homes

Reclaim your city space: Projects in Delhi, Mumbai and Kolkata aim to transform lives

 
Three projects in three cities aim to transform the lives of people who live close by. The one in Mumbai hopes to transform a congested area into a green precinct; the one in Delhi converted an open drain into a walkway, while Kolkata hopes to bring the crowds back...