As per news sources, Online retailers lead race for commercial real estate ,E-commerce companies Amazon India and Flipkart Internet Pvt. Ltd’s search for an extra 600,000 sq.ft of warehousing space in Mumbai and the Max Group’s plan to build what it calls India’s No. 1 corporate office point to increasing action in India’s commercial real estate market.
As per news, Amazon India is close to leasing around 400,000 sq.ft of warehousing space at Bhiwandi in Maharashtra while Flipkart is looking to add around 200,000 sq.ft in the same area.Both firms are looking at adding 2 million sq.ft of warehousing space across the country.
Demand for prime office space reached a 10-quarter high of about 11 million sq. ft in the quarter ended September, as per data released on Wednesday by CBRE India, a commercial real estate services and investment firm.
A 29 September report by property consultant Knight Frank projected warehousing requirement of online retail firms to double to 29 million sq.ft in 2020.
As per news,Max Group founder Analjit Singh is planning to enter residential segments with a focus on big mixed-used townships having both office and residential space.
While Mumbai and the National Capital Region (NCR) centred on Delhi are on the cusp of seeing these big expansion plans kick off. CBRE data shows overall demand for office space in the quarter to 30 September rose 14% from a year ago across nine cities.
Bengaluru saw the highest increase with a 24% rise in leasing followed by Hyderabad with 17%.
According to CBRE,the southern cities saw some of the biggest deals in the September quarter, including Tata Consultancy Services Ltd leasing 550,000 sq ft. at ITBP Victor Block in Bengaluru and Cognizant Technology Solutions Corp.’s transaction of 5.2 lakh sq.ft of space at HO4 Avance Business Hub in Hyderabad.
Information technology (IT) and IT-enabled services firms led office transaction activity, accounting for about 54% of the deal closures.
Financial services, and engineering and manufacturing were other sectors driving demand for office space.
Increase in rentals has now moved to relatively smaller markets of Chennai, Hyderabad and Pune, even as bigger markets, such as Bengaluru, continue to post rental growth.
Last month, Flipkart opened its second warehouse in Uttar Pradesh, spread across 55,000 sq.ft, primarily to cater to the demand of the 2-6 October Big Billion Days sale. At present, the company operates around 18 warehouses across the country, as news reveal.