The trend reflects the ongoing dynamics of the real estate market in India, where factors such as supply-demand imbalances, evolving business needs, and economic conditions continue to shape the commercial property landscape.
While the slight reduction in vacancy rates is encouraging, it is important for industry stakeholders to remain vigilant and adaptive to effectively navigate the ever-changing real estate environment.
Amidst a noteworthy 50% decline in the supply of commercial properties and a marginal 5% decrease in vacancy levels compared to Q1 2022, the commercial real estate market is witnessing a consequential shift. The reduced supply has caused rental prices to surge, emphasizing the significance of agility and strategic decision-making for businesses searching for suitable commercial spaces," stated
While this poses challenges for companies seeking new locations, it also unveils exciting investment prospects in existing properties. To successfully navigate this evolving real estate landscape, industry players must remain well-informed and adopt innovative strategies that adapt to the market dynamics.
On a year-on-year basis, all Tier-1 cities, except Pune, have witnessed a significant appreciation in transacted rental prices, ranging from 8% to 36%. Among these cities, Bengaluru leads the pack with a remarkable 36% increase in transacted rental prices compared to the previous year.