India is expected to witness the second highest demand for office space in 2014 amongst the top 30 cities in the Asia-Pacific region. The total office space absorption in India is estimated to be at 22 million sq ft by the end of 2013. It is important to note that nearly 25-30 per cent of the gross office space absorption included relocations and consolidations. Bengaluru is expected to be the biggest commercial real estate market in the country due to expansion of IT, ITeS and MNCs whilst office space absorption in Mumbai is expected to increase by 93 per cent this year.
Whilst given in to the volatility in trends, experts are of the view that it may be a good time to invest in commercial real estate for the long term in India. The opportunity to earn higher returns compared to residential property and potential of commercial office space growth in India make commercial real estate a promising sector.