2018 is the best performing year for commercial office segment

2018 is the best performing year for commercial office segment

According to a Knight Frank India report, 2018 is the best performing year historically for the commercial office segment with leasing crossing 46 million square feet. The residential market saw some upward movement in sales velocity, but the year stopped short of any significant recovery. Total sales of residential units were estimated to be 242,328 registering a 6% increase over full year 2017.

In 2018, for the first time in this decade residential market annual launch numbers have grown year on year basis. The total new units launched in full year 2018 is estimated to be 182,207 which was higher by 75% as compared to the total units launched in 2017. 60% of all launches were within the Rs 50 Lakhs bracket as the most developers were concentrating on the affordable and mid – ranged segment. Mumbai (38,390 units), Pune (18,580 units) Bengaluru (11,830 units) saw the highest new unit launches in full year 2018. Further, most markets recorded moderate growth in prices. In Mumbai, prices fell by 7% while Hyderabad recorded a price rise of 7% YoY in 2018.

An improving regulatory environment, reducing prices, indirect discounts and an increasing infusion of residential products that are more in tune with the homebuyer’s preferences have culminated in a 6% YoY growth in sales during 2018. Sales volume in full year 2018 was estimated at 242,328 units.

On the other hand, office space market achieved record transaction levels in second half of 2018 as well as for the full year, 2018. Growing by 12% YoY, both full year 2018 and H2 2018 saw the highest transaction volumes (46.8 msf and 25.2 msf respectively) achieved in this decade. The 46.8 msf transacted during 2018 was in fact the highest space transacted ever in the Indian office space market for any single year. Bengaluru continued to lead the office space market recording the highest leasing volumes at 13.4 msf. Office space supply in the city was recorded at 7.6 msf in full year 2018.

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