| Real estate footprint on the rise in South India The three cities of Hyderabad, Bangalore and Chennai together account for nearly 45 per cent of country's office stock and southern cities represent 56 per cent of the country's mall supply between 2012 and 2016 and for residential estate, on average, these cities record nearly one-third of the country's new launches in the past five quarters. Also, with a total stock of nearly 140 million sft in the major cities here, the vacancy rate by the end-2012 was expected to be 16 per cent, considerably lower than the pan-India vacancy rate of over 20 per cent. In terms of transparency levels across 20 major cities during last year, Andhra Pradesh, Tamil Nadu and Karnataka featured in the top ten ranks for five parameters that included availability of market information, reforms in Urban Local Bodies, progressive business environment, inclusive and sustainable development and protection of Property Rights. According to Jones Lang Lasalle, residential markets here remained resilient in the past few quarters relative to the significant decline recorded in the sales volume of Mumbai and NCR. The region does not lag behind others even for residential estate and the launches in southern cities during past few quarters were at par with the western region. For the retail real estate, Jones Lang Lasalle initiative documented that with 59 malls in pipeline, Hyderabad, Bangalore and Chennai represent 56 per cent of the country's mall supply in coming years. Towards this, the report cites new milestones as commercial advantage of Bangalore, infrastructural progress of Hyderabad, industrial and residential highlights of Chennai or the emergence of upcoming cities such as Kochi, Coimbatore, Visakhapatnam and Mysore. On the office real estate front, the Jones Lang Lasalle report noted that it is primarily driven by the IT/ITES sector as it offers large office spaces at affordable rents providing lower operational costs to occupiers. 4,000 per sft or below continue to dominate the residential market here, the report said. |
Saturday, 9 June 2012
Real estate footprint on the rise in South India
