Commercial Real Estate Sparkles In 2019
New Delhi: Office space supply in 2019 has gone up by 13 percent as compared to 2018, touching 43.3 million sq ft this year as compared to 38.2 million sq ft in 2018, according to ANAROCK property consultant.
Absorption of commercial space has gone up 11 percent in 2019 as compared to 2018 and touched 37 million sq ft reached 2015 levels.
Commercial real estate attracted maximum PE investments in 2019, totalling about USD 3 billion funds in the first three quarters of 2019. In the same period of 2018, the total PE inflow in the Commercial real estate segment was about USD 2.1 billion, thus going up by 43 percent.
The vacancy levels have marginally gone down to 14.3 percent in 2019 from 14.6 percent in 2018. The bigger cities will see strong office absorption with rising supply pipeline in the next few years.
However, the debacle of the WeWork’s IPO has dealt a heavy blow to the co-working segment which had become the poster boy of the commercial real estate segment in the country.