Mumbai to lead office space supply with 25% share in 2011-12

MUMBAI: Mumbai will lead the Indian office space supply with more than 25 per cent share, followed by Bangalore and Delhi with 19 and 17 per cent, respectively, in 2011-2012, a real estate services firm said.

India added around 55-million sq ft of office space in 2010 and is expected to add around 50-million in 2011-12.

Additionally, real estate transactions which were on the rise in 2010, will continue to increase in 2011 as well, the firm -- CB Richard Ellis ( CBRE) India said today.

"The overall real estate performance of the country has been on an upward trend with increasing transaction volumes. This is due to sustained IT industry activity, impact of economic recovery on new economy sectors, global optimism on corporate expansion, consumer confidence and a rise in income levels," CB Richard Ellis South Asia Chairman and Managing Director, Anshuman Magazine, told reporters here.

"The residential segment might witness reduced absorption due to significant price increase in prime metro micro markets, large supply and an increase in mortgage rates," Magazine said.

In the retail segment the total number of malls in India are expected to be more than 200, while another 80-90 are lined-up to get operational in the next 2-years.

" Retailers will continue to hold sway in certain over-supplied locations, pressing developers for revenue share and related incentives," he said.