*Bengaluru topped the list of Asia-Pacific region (APAC) cities with the highest number of flexible stock ahead of 11 major cities, according to CBRE’s Asia Pacific Flexible Office Market (hybrid of office and industrial space) findings. By September 2022, it recorded 10.6 million sq ft (Grade-A assets), ahead of Shanghai, Beijing, Seoul, Tokyo and Singapore.
* According to Colliers there has been strong growth in new supply in office space, led by Bengaluru and Hyderabad. 2022 will soon be declared as the best year in terms of office space leasing, with the top 6 cities of Bengaluru, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune likely to cross 50 million sq ft.
* By November 2022, the cost of construction is set to increase by 28%, over pre-pandemic (Nov 2021) levels. The cost of key construction materials rose 32% over the three-year period, affecting margins and operating schedules of construction companies. Government’s efforts like reducing exports and cutting import duty have kept raw material costs under check in the last few months.
* Prices of major construction materials such as cement, steel, aluminum and copper saw a significant increase in fuel and labor costs due to geopolitical issues, inflation etc. This created a challenge for developers who were facing high debt and liquidity concerns. According to Ramesh Nair, CEO-Colliers, the cost of key construction materials is likely to remain volatile over the next few months due to uncertainties created by geopolitical issues, continued lockdown in China and a possible global recession. Material prices will depend on a number of factors, including global economic conditions, inflation rates and supply constraints. Hence, the developers are likely to push the new launch.
* Knight Frank’s ‘Asia-Pacific Outlook 2023’ (24 markets in the APAC region) covered three Indian cities – Bengaluru, Mumbai and New Delhi. On the aspect of residential outlook, Bengaluru is highlighted as the second best market in 2023 among APAC cities. in the report.