India & China to be largest contributors to Grade-A office space in 2016: Colliers

Article from ET Realty

NEW DELHI: India and China together will account for around 70% of the impending supply of Grade A office space in 2016, reports property consultancy Colliers International.

Around 25 million sq ft of Grade A office space has already hit the market in 2015 and more than 80 million sq ft is being planned for the next three years, according to the report named ‘2016 Property Outlook’.

The outlook for real estate in the Asia Pacific region remains largely positive heading into 2016 and the government’s policy and initiatives will continue to drive the behaviour of investors in many markets, the report said. “As India is opening its domestic economy to international capital, the country is cropping up on the radar for investors,” says Surabhi Arora, Associate Director, Research at Colliers India.

IT/ITeS sector will continue to drive the office leasing in Indian markets in 2016, the report says.

“In the residential real estate, the affordable and mid-segment housing will remain in demand. With the government supporting the affordable segment, private players are seeking opportunity in this sector,” she adds.

Colliers anticipates that e-commerce is reshaping retail and industrial space around Asia as growth in E-commerce business is resulting in large demand for purpose-built facilities in India. It further sees Logistics as one of the most exciting spaces for investment.

“In the retail segment, mall operators are cautious in adding any new supply in the countries like India,” the report says.

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