1. Growth in Supply
The office sector in India has witnessed remarkable growth, with supply completions projected to exceed 165 million sq. ft. between 2023-2025. This positive outlook reflects developers’ confidence and sustained occupier demand. Notably, the average annual office supply increased by 17% from 2020 to 2022, and the average building size grew by 18% during that period.
2. Regional Dominance
- Bangalore and Hyderabad are set to dominate the upcoming office space supply, accounting for nearly half of the total supply in India during 2023-2025.
- Other key cities contributing to this surge include Delhi-NCR, Pune, Chennai, Mumbai, and Kolkata.
- In Bangalore, new office developments will focus on the Outer Ring Road and North Business District areas, while Hyderabad will see growth in IT Corridor II and Extended IT Corridor.
- Delhi-NCR’s office space completions will be concentrated in the Expressway Golf Course Road Extension, and Pune will witness most completions in Peripheral Business District NE South Business District NW.
- Chennai’s new office supply will mainly emerge in OMR Zone 2 and MP Road, while Mumbai’s growth areas include the Navi Mumbai Business District and EX Business District.
- Kolkata’s new office supply will primarily be in the Peripheral Business District and South Business District.
3. Occupier Segments
- Banking, financial services, and insurance (BFSI) firms, along with technology corporates, lead the space take-up.
- Engineering and manufacturing (E&M) companies, as well as flexible space operators, also contribute significantly.
4. Domestic Players
- Domestic firms continue to dominate absorption activity, accounting for 45% of the quarterly share and 44% annually.
- Among domestic players, flexible space operators, BFSI firms, and technology corporates play a crucial role.
Conclusion
India remains a dynamic hub for office spaces, driven by robust supply, occupier demand, and developer optimism. As the ‘office of the world,’ India’s real estate landscape continues to evolve, creating opportunities for growth and innovation.
Remember, the future of work lies within these vibrant office spaces, where collaboration, productivity, and creativity thrive! 🌟🏢
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