Kolkata market witnesses 13.8% increase in gross absorption in 2018: Colliers International India
The Kolkata office market witnessed a 13.8% increase in gross absorption in 2018. In Q4 2018, overall absorption was 215,500 sq ft, with the full year 2018 reaching 910,000 sq ft. In 2018, Sector V and the Peripheral Business District (PBD) areas remained the most active micro markets in terms of leasing volume contributing 54% and 34% to total absorption, respectively.
"Sector V and Rajarhat continues to be the preferred location for expansion and relocation among IT and non-IT companies. This trend is likely to continue in the short-to-medium term due to the availability of ample Grade A supply as well as good infrastructure," says Shubho Routh, Associate Director, Office Services (Kolkata) at Colliers International India.
Flexible workspace operators contributed 10% of the total leasing volume, while technology occupiers accounted for 29%. In terms of developments, IT-ITeS and IT-Special Economic Zones (SEZs) offices attracted 57% of the overall transaction volume and the remaining leasing was in the non-IT office spaces.
In Q4 2018, the Sector V micro market witnessed the highest Grade A supply of the year, adding 800,000 sq ft to stock. Due to increased leasing momentum in 2018, they witnessed developers quickly completing their projects, pushing total supply to 1.3 million sq ft at the end of the year.
Colliers project new supply of about 2.4 million sq ft over the next three years, increasing total stock by 8.9%. About 50% of the planned developments are in the Sector V micro market, followed by the SBD micro market on 43%, while the CBD is planned to account for 7.4%.
About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly-listed global real estate services and investment management company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide, and through its investment management services platform, has more than $25 billion of assets under management from the world's most respected institutional real estate investors.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of their clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.
Source: Colliers International India PWR PWR
(With inputs from agencies.)
- Niti Aayog seeks involvement in allocation of developmental funds to states
- Techstars chooses 10 companies for accelerator programme
- DoT to seek Trai views on spectrum allocation to railways: Official
- NCLAT seeks list of IL&FS group companies as govt proposes resolution plan
- Partnership with India can substantially benefit Monaco's companies says President