Office market to see over supply between 2012 and 2016

Global real estate consultant, Cushman & Wakefield's estimates commercial office space demand of over 180 million square feet (msf) in the next five years in the top 8 cities of the country.

October 11, 2012 / 17:32 IST

Global real estate consultant, Cushman & Wakefield’s estimates commercial office space demand of over 180 million square feet (msf) in the next five years in the top 8 cities of the country. This was released in the annual publication entitled “Evolving Paradigm - Future of Indian Real Estate” in association with Global Real Estate Institute (GRI) at their India Summit 2012. The report also estimates the total expected supply for the next five years in these eight cities as 219. 6 million sqft, basis announced projects and current pace of construction; indicating a condition of excess supply in the coming few years.

The highest demand will be recorded in Mumbai with an estimated 44 msf over the next few five years followed by Bengaluru (31 msf) and NCR (27.8 msf). The top three cities will constitute approximately 57% of the total office space demand. Ahmedabad will record the lowest office demand of approximately 7.8 msf in the next five years, while Kolkata will be finish one but last with demand of 8.4 msf.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, “Based on expected recovery of the economy, partly due to global recovery, but largely due to the positive signals being sent out by the Central Government to promote business investments, office space demand is expected to witness a positive growth of 10% in 2013 and 20% in 2014. This is, however, likely to reduce over the next two years (2015-16) drawing from the forecasts that predict a slowdown in global GDP.”