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This article is more than 3 year old.

Grade A office space absorption likely to reach 700 million square feet by 2020

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The real estate sector is set to grow in the coming years with the office absorption in 2020 projected to exceed the historic high of 2011 which stood at 37 million sq.ft, says a FICCI-JLL report.

Grade A office space absorption likely to reach 700 million square feet by 2020
With the Indian economy moving back on the recovery mode, demand for Grade A office space is likely to grow significantly with absorption expected to surpass 700 million square feet (sqft) by 2022, a recent survey said.
According to a study jointly conducted by JLL and FICCI, Grade A office space absorption, which is currently at 530 million sqft, is expected to reach 700 million sqft by 2022.
As of January-June 2018, India's Grade A completed stock in the retail segment stood at 77 million sqft, and is expected to reach nearly 103 million sqft by 2022.
The report also said the real estate sector in India is set to grow in the coming years with the office absorption in 2020 projected to exceed the historic high of 2011 which stood at 37 million sqft.
Currently, the office growth is steady and has a stable vacancy rate. The suburban submarkets are playing an important role in the office growth. The co-working office space has almost doubled to 9 percent in H1 2018 as compared to 5 percent in CY 2017.
The report also predicted Bengaluru to witness the highest absorption during 2018-2020, while the absorption rate in Mumbai will surpass supply during the same period.
Delhi-NCR is supposed to witness the highest absorption during 2018-2020 and the absorption levels in Mumbai and Kolkata will surpass the supply during 2018-2020.
In terms of affordable housing, the FICCI-JLL report highlighted that Bengaluru and Mumbai will be the biggest contributors to new residential launches. The houses ranging under Rs 40 lakhs were launched most in 2017 and H1 2018.
It also predicted the affordable housing finance to flourish into Rs 6 lakh crore business opportunity by 2022.
According to the report, an investment of Rs 50,000 crore will create warehousing facilities across the country between 2018 and 2020, adding that the logistics and warehousing sector will grow at a compounded growth rate of 22 percent between 2018 and 2020.
The Student housing growth sector has the capacity to provide 12 percent returns and it will grow at a compounded growth rate of 38 percent until 2020, to Rs 2,400 crore, said the report.
With inputs from PTI.
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