INDUSTRIAL SPACES ON TOP
The industrial regions in India witnessed the highest increase in their rental values amongst the Asia Pacific locations, with
Greater Noida reaching the 8th position, globally. ET Realty gives an account
Despite the economic slowdown in the country, demand for industrial space in India witnessed a robust growth. According to a Cushman and Wakefield report, Industrial Spaces across the World 2009, Greater Noida in the National Capital Region (NCR) saw the eighth highest annual growth in rental values in the world as on December 2008, and the highest in the country.
Peenya Industrial area and Bommasandra Industrial Areas in Bangalore recorded 12th and 16th highest annual growth in rental values in the world, respectively. Mumbai's Thane-Turbhe Creek, which recorded the highest growth last year and finished at the 26th position as the most expensive industrial location, slipped eleven places to settle at the 37th spot, the report said. According to the report, London's Heathrow retained its position as the most expensive industrial location for the eighth consecutive year.
According to the report, industrial areas in India saw the highest growth in rental values amongst the Asia Pacific locations.
Greater Noida, Peenya Industrial Area, Bommasandra Industrial Estate and Jigani Industrial Area took the top four positions in the Asia Pacific region. NCR's Greater Noida area, which has been developed to attract medium to large-scale industries, recorded an annual growth of 25% in industrial rental values at Rs 10 per sq ft per month in 2008. Greater Noida has been particularly promoted for campus development, but in the recent past, did not receive much supply. This, coupled with marginal vacancy, has pushed the rental values northward, the report says. Demand only marginally exceeded supply and mostly came from large corporates like engineering goods, electronic goods, some auto and autoancillary industries, among others. The area has also attracted ancillaries like warehousing and logistics, the report points out.
Greater Noida, which is considered to be one of the most planned cities in north India, has come up as education centre. A large number of engineering colleges and other vocational institutions have been developed in the townships. Experts feel the development of such a large number of educational institutions will lead to improvement in the supply of trained manpower. This will also help other industries to come up in the township. Besides, as education sector is dependent on domestic players, the global slowdown has not affected it.
On the other hand, Manesar in Gurgaon saw an 8% fall in rental values in the same period as a result of large industrial area supply, which entered the location outstripping demand and mostly catered to the requirements of small to medium-size industrial sheds/locations. This area continues to be popular with small to medium-scale industries due to good connectivity and infrastructure, the report says.
Harleen Oberoi, the executive director of industrial services at Cushman and Wakefield, says, "Traditionally, expensive industrial locations like Mumbai (Thane, Turbhe Creek), Pune (Talegaon, Chakan, Ranjangaon), Chennai (Sriperumbudur), have seen a slowdown due to high price points and large scale development in recent years. Slowdown in the economy has affected the general uptake of industrial spaces, especially by large multi-national corporations, which were keenly looking at India in the past few years. However, the demand from indigenous industrial sector, including medium to small operations, has not decreased that rapidly and therefore new locations and locations providing smaller industrial sheds continued to grow in 2008."
Peenya Industrial Area and Bommasandra Industrial Area around Bangalore witnessed healthy growth in rentals at 19% and 11%, respectively, in 2008, the report said. These established industrial locations around the IT city of Bangalore witnessed demand from smalland medium-scale industries. These locations have very little fresh supply, but due to favourable factors, have seen increased demand. Typically, demand for this sector comes from sectors like manufacturing, electronics, storage and warehousing, the report points out. Mumbai's Thane-Turbhe Creek (TTC) continued to be the most expense Industrial location in India with Rs 33 per sq ft per month rentals. However, the location did not see any change in rental values in 2008. This is largely due to subdued demand from various sectors. Apart from the industrial sector, this was also garnering heavy interest from the IT/ITeS, research and development, bio-technology, etc., due to superior development and relatively affordable rental values as compared to other corporate office locations.
However, the report says with the slowdown hitting most of these sectors, the location also has lost some of its sheen. This is the most expensive industrial location and has reached very high price points and thus prospective occupants have started to prefer other more cost effective locations over TCC.
Courtesy:- ET dtd:- 27-03-09
Greater Noida reaching the 8th position, globally. ET Realty gives an account
Despite the economic slowdown in the country, demand for industrial space in India witnessed a robust growth. According to a Cushman and Wakefield report, Industrial Spaces across the World 2009, Greater Noida in the National Capital Region (NCR) saw the eighth highest annual growth in rental values in the world as on December 2008, and the highest in the country.
Peenya Industrial area and Bommasandra Industrial Areas in Bangalore recorded 12th and 16th highest annual growth in rental values in the world, respectively. Mumbai's Thane-Turbhe Creek, which recorded the highest growth last year and finished at the 26th position as the most expensive industrial location, slipped eleven places to settle at the 37th spot, the report said. According to the report, London's Heathrow retained its position as the most expensive industrial location for the eighth consecutive year.
According to the report, industrial areas in India saw the highest growth in rental values amongst the Asia Pacific locations.
Greater Noida, Peenya Industrial Area, Bommasandra Industrial Estate and Jigani Industrial Area took the top four positions in the Asia Pacific region. NCR's Greater Noida area, which has been developed to attract medium to large-scale industries, recorded an annual growth of 25% in industrial rental values at Rs 10 per sq ft per month in 2008. Greater Noida has been particularly promoted for campus development, but in the recent past, did not receive much supply. This, coupled with marginal vacancy, has pushed the rental values northward, the report says. Demand only marginally exceeded supply and mostly came from large corporates like engineering goods, electronic goods, some auto and autoancillary industries, among others. The area has also attracted ancillaries like warehousing and logistics, the report points out.
Greater Noida, which is considered to be one of the most planned cities in north India, has come up as education centre. A large number of engineering colleges and other vocational institutions have been developed in the townships. Experts feel the development of such a large number of educational institutions will lead to improvement in the supply of trained manpower. This will also help other industries to come up in the township. Besides, as education sector is dependent on domestic players, the global slowdown has not affected it.
On the other hand, Manesar in Gurgaon saw an 8% fall in rental values in the same period as a result of large industrial area supply, which entered the location outstripping demand and mostly catered to the requirements of small to medium-size industrial sheds/locations. This area continues to be popular with small to medium-scale industries due to good connectivity and infrastructure, the report says.
Harleen Oberoi, the executive director of industrial services at Cushman and Wakefield, says, "Traditionally, expensive industrial locations like Mumbai (Thane, Turbhe Creek), Pune (Talegaon, Chakan, Ranjangaon), Chennai (Sriperumbudur), have seen a slowdown due to high price points and large scale development in recent years. Slowdown in the economy has affected the general uptake of industrial spaces, especially by large multi-national corporations, which were keenly looking at India in the past few years. However, the demand from indigenous industrial sector, including medium to small operations, has not decreased that rapidly and therefore new locations and locations providing smaller industrial sheds continued to grow in 2008."
Peenya Industrial Area and Bommasandra Industrial Area around Bangalore witnessed healthy growth in rentals at 19% and 11%, respectively, in 2008, the report said. These established industrial locations around the IT city of Bangalore witnessed demand from smalland medium-scale industries. These locations have very little fresh supply, but due to favourable factors, have seen increased demand. Typically, demand for this sector comes from sectors like manufacturing, electronics, storage and warehousing, the report points out. Mumbai's Thane-Turbhe Creek (TTC) continued to be the most expense Industrial location in India with Rs 33 per sq ft per month rentals. However, the location did not see any change in rental values in 2008. This is largely due to subdued demand from various sectors. Apart from the industrial sector, this was also garnering heavy interest from the IT/ITeS, research and development, bio-technology, etc., due to superior development and relatively affordable rental values as compared to other corporate office locations.
However, the report says with the slowdown hitting most of these sectors, the location also has lost some of its sheen. This is the most expensive industrial location and has reached very high price points and thus prospective occupants have started to prefer other more cost effective locations over TCC.
Courtesy:- ET dtd:- 27-03-09
