2015 has been a year of growth for the commercial sector, as many e-commerce companies and startups invested in purchasing office space in several major cities. There was a total eight-fold takeover last year and these organizations leased 4.3 million square feet in 2015. Many e-commerce companies like Amazon, Flipkart, and Snapdeal actively took up space, adding a lot to the sale. total commercial properties in India.
Of the total office market demand, about 10% is driven by e-commerce companies today, which wasn’t there two years ago. Cities like Bangalore and Gurgaon lead the demand for commercial property in the country. It is becoming apparent that e-commerce companies are seeking expansion in both operations and workforce.
The developers say they have seen active interest from e-commerce companies, which are now an important segment for them. India is the third largest emerging country and the fastest growing ecosystem internationally. Investors invested a huge amount in startups last year, which is basically 50% of the last 5 years. There is an expectation of increased business creation that will automatically increase employment in the nation.
Looking at all the development in commercial property in India, online startups and businesses are encouraged to expand their presence in the nation. Companies like Ola, Jabong, and Snapdeal bought large land to expand their businesses, especially in cities like Gurgaon and Bangalore.
There has been an increase in the space requirement by eCommerce businesses and startups specifically in the past year. There are expectations that more requests for proposals will come from organizations in this particular sector. 2015 definitely saw a huge demand from the commercial sector in Indian property which was the second highest after 2011. creation.
Also, it cannot be said that the only reason for less property sales is property prices in India, as there is huge unsold inventory in various projects or cheaper markets in low budget segments across the country.
While house prices have not explicitly fallen, flattening inflation and equity values working together have caused an implicit price correction. There is an expectation of a positive impact on the market with the reduced interest rates and the festive season. Therefore, the general scenario will be positive and the Indian real estate market will remain positive in the short to medium term.
