Home / Companies / News /  Large deals from tech companies and flex space operators to drive office space demand, says Colliers
Listen to this article

With economic activity picking up, institutional investment in the Indian real estate sector doubled year-on-year to 1.1 USD billion in Q1 2022. “Institutional investors continue to view the country’s real estate sector favourably with foreign investors seeing a huge upside in rent yielding assets", says Colliers’ latest Real Estate Quarterly highlights. According to the report, RBI’s data localization rules are expected to drive the demand for data centers in major cities. 

On the real estate front, commercial gross office absorption rose 100% (y-o-y) to 13 million square feet, and on the industrial front, industrial and warehousing demand rose 11% (y-o-y) to 6.2 million square feet in Q1 2022 as per the report. Office assets, which remain the preferred choice of investment for capital investors, accounted for 57% of the investment portfolio in the latest quarter. Industrial and warehousing assets accounted for another 16%. 

As regards the industrial market, third-party logistics was the largest demand segment under it, followed by engineering at 17% in Q1 2022. Vacancy levels are expected to remain range-bound due to lower supply and robust leasing. In terms of what to expect in the office market space, demand is expected to remain strong over the next few quarters on account of large deals from technology companies and flex space operators as per the report. Supply is expected to remain robust as developers focus on completing the projects delayed by the pandemic.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Recommended For You
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout