Stir of office deals push up realty industry revival hopes

Top Indian cities have realised a significant rise in large office space transactions with companies across sectors expanding and consolidation operations,kindling hopes of a revival in a real estate industry. India's top six property markets reported 236 transactions for large office spaces — of at least 25,000 square feet and up to over one lakh sqft — last fiscal year, commercial data information and analytics firm Propstack. This is nearly 30% higher from the number of deals registered in 2014-15. "It is apparent from the increased number of transactions that business confidence is gaining momentum. According to Cushman & Wakefield, absorption is likely to gain momentum with current precommitment levels across eight cities seen at 11.80 msf in 2015, which would give a fillip to the trend of large deals in 2016 amidst frenzied consolidation activity in the market. Most of the pre-commitments are likely to be absorbed in 2016, with the some of them spilling over to 2017.

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