During the first half of 2013 (Jan–June 2013), Bangalore recorded the highest proportion of relocations. According to a Cushman & Wakefield report, the relocations in Bangalore increased three times when compared to the same period last year. This is on the back of a lot of companies relocating from M.G. Road, Millers Road, Vittal Mallya Road and Residency Road to peripheral regions such as the Outer Ring Road. IT/ITeS and consulting companies. The average relocation deal size was of approximately 1 lakh sq.ft
The report also shows that, office markets in India noted a rise in relocations and consolidations of companies to suburban or cost efficient locations during the first half of the year (Jan – June 2013). The total relocations across top eight cities in the same period was noted at 5.46 million square feet which was 2.5 times higher compared to the same period last year and is one third of the total leasing activity.
After, Bangalore, cities like Delhi and Hyderabad saw the highest relocations. For instance, the National Capital Region (NCR) office occupiers opted to relocate from prime locations in Delhi to Gurgaon as well as within Gurgaon with the rental differentials in the range of 20-30%.
Whereas, Hyderabad saw active relocations from locations such as Banjara Hills, Begumpet, Somajiguda to suburban locations of Madhapur and Gachibowli with relatively lower rentals by approximately 10-11%.
Ritesh Sachdev, Executive Director, Tenant Strategies & Solutions, Cushman & Wakefield says, “The markets has seen a large number of corporate relocating and consolidating their operations within a city to locations with quality construction with space scalability options at rentals lower by as much as 15-30%.”
