The Indian office supply completions across the top seven cities in India will touch 165 million square feet (msf) between 2023 and 2025 while Bengaluru will lead the supply with 29 percent of total share in India, according to a report by the real estate consultant CBRE.
The report Office Myths Debunked said the supply during the 2020-2022 period stood at 142 msf. Hyderabad will account for 20 percent of supply share, followed by Delhi-NCR at 17 percent, Pune at 12 percent, and Chennai at 11 percent, it added. Mumbai and Kolkata will account for 9 percent and 2 percent share, respectively.
The report added that despite prevailing economic conditions, IT expenditure in India is expected to remain robust throughout 2023. The demand for office space was primarily driven by BFSI, technology, and pharmaceutical companies, accounting for a 50 percent share in Jan-Sep 2023, with expectations of sustained leasing activity in the long term.
The report projects continued growth in the annual employment rate for office-going professionals in the six major cities, forecasting an 11 percent increase in 2023.
Bengaluru will lead the supply
New office development completions in Bangalore will be concentrated in the Outer Ring Road, North Business District area, while in Hyderabad IT Corridor II, Extended IT Corridor will see most of the new completions.
Delhi-NCR’s new office space completions will be dominated by the Expressway, and Golf Course Road extension, while Pune will see most completions in Peripheral Business District NE, South Business District NW.
The report said the upcoming new office supply in Chennai will be mainly witnessed in OMR Zone 2, MP Road, while in Mumbai it will be in the Navi Mumbai Business District, EX Business District.
"The average annual office supply increased by a robust 17 percent, and the average building size increased by a significant 18 percent over 2020-2022. This growth is expected to further accelerate by 15-18 percent during the next three-year period from 2023 to 2025, supported by strengthening occupier demand and developers' expansion plans," Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
