<p> The office absorption is estimated at 158 million square feet (msf) during 2015-19 across top eight Indian cities. <br /><br /></p>.<p>And in this, Bengaluru is likely to see the highest share of 27 per cent amounting to 43 msf in cumulative absorption (2015-19) with the IT-ITeS sector driving demand, followed by Delhi-NCR contributing 17 per cent of the total cumulative absorption during 2015-2019.<br /><br /> Interestingly, Mumbai is likely to see 17 msf of absorption during the period, lower than Hyderabad and Pune owing to limited infusion of quality supply in the coming years, a recent study and report released by real estate consultancy Cushman and Wakefield has revealed.<br /><br />This year (2015) is expected to record 29.5 msf office space net absorption in top eight cities recording a marginal demand of 4 per cent over previous year. <br /><br />However, average absorption levels during 2015-19 is expected to be 31.6 msf which is higher than the average noted in last five years on account of strengthening business confidence and steady economic growth. <br /><br />This assessment was released at the annual Real Estate Investment publication titled “India Real Estate – Resurgence on the Anvil” in association with Global Real Estate Institute (GRI) at their annual India Summit 2015.<br /><br />Grade ‘A’ office stock<br /><br />The total Grade ‘A’ office stock is expected to cross the 500 msf mark by 2017, from the current stock of 404 msf as of September 30, 2015. <br /><br />This is on the back of strong demand from the occupiers which is encouraging the developers to step up the construction of new office space. While Bengaluru crossed the 100 msf mark, Delhi NCR is expected to cross this mark in 2016. <br /><br />This would encourage institutionalisation of the office market and create more transparency. The role of asset management companies is also likely to increase with large amount of Grade ‘A’ office spaces coming up. <br /><br />Bengaluru will be the highest contributor (25 per cent) of the new supply during 2015-19 followed closely by Delhi NCR contributing 21 per cent of the new supply during the same period. <br /><br />Within Bengaluru, Outer Ring Road will have 28 msf of new supply during the same period. In Delhi NCR, Gurgaon is expected to have 7 msf of new supply for the same period. Hyderabad will be contributing 17 per cent of the total new supply during 2015-19.<br /><br />Outer Ring Road (ORR) in Bengaluru has emerged as the top office location expected to witness the highest absorption in the next five years. <br /><br />It has seen steady absorption levels contributing an average of 54 per cent to city’s total absorption in last five years (2010-2014) which is likely to sustain during 2015-19. <br /><br />This key market in Bengaluru has become a leading IT-ITeS destination with IT global companies such as IBM, Cisco, Philips, Intel, Honeywell, Seagate, LinkedIn - to name a few operating from this location. <br /><br />The location started to gain prominence in early 2000 owing to availability of land parcels, proximity to Central Business District and infrastructure developments. <br /><br />The micro-market is expected to see increased supply totalling to 27 msf during 2015-19.<br /></p>
<p> The office absorption is estimated at 158 million square feet (msf) during 2015-19 across top eight Indian cities. <br /><br /></p>.<p>And in this, Bengaluru is likely to see the highest share of 27 per cent amounting to 43 msf in cumulative absorption (2015-19) with the IT-ITeS sector driving demand, followed by Delhi-NCR contributing 17 per cent of the total cumulative absorption during 2015-2019.<br /><br /> Interestingly, Mumbai is likely to see 17 msf of absorption during the period, lower than Hyderabad and Pune owing to limited infusion of quality supply in the coming years, a recent study and report released by real estate consultancy Cushman and Wakefield has revealed.<br /><br />This year (2015) is expected to record 29.5 msf office space net absorption in top eight cities recording a marginal demand of 4 per cent over previous year. <br /><br />However, average absorption levels during 2015-19 is expected to be 31.6 msf which is higher than the average noted in last five years on account of strengthening business confidence and steady economic growth. <br /><br />This assessment was released at the annual Real Estate Investment publication titled “India Real Estate – Resurgence on the Anvil” in association with Global Real Estate Institute (GRI) at their annual India Summit 2015.<br /><br />Grade ‘A’ office stock<br /><br />The total Grade ‘A’ office stock is expected to cross the 500 msf mark by 2017, from the current stock of 404 msf as of September 30, 2015. <br /><br />This is on the back of strong demand from the occupiers which is encouraging the developers to step up the construction of new office space. While Bengaluru crossed the 100 msf mark, Delhi NCR is expected to cross this mark in 2016. <br /><br />This would encourage institutionalisation of the office market and create more transparency. The role of asset management companies is also likely to increase with large amount of Grade ‘A’ office spaces coming up. <br /><br />Bengaluru will be the highest contributor (25 per cent) of the new supply during 2015-19 followed closely by Delhi NCR contributing 21 per cent of the new supply during the same period. <br /><br />Within Bengaluru, Outer Ring Road will have 28 msf of new supply during the same period. In Delhi NCR, Gurgaon is expected to have 7 msf of new supply for the same period. Hyderabad will be contributing 17 per cent of the total new supply during 2015-19.<br /><br />Outer Ring Road (ORR) in Bengaluru has emerged as the top office location expected to witness the highest absorption in the next five years. <br /><br />It has seen steady absorption levels contributing an average of 54 per cent to city’s total absorption in last five years (2010-2014) which is likely to sustain during 2015-19. <br /><br />This key market in Bengaluru has become a leading IT-ITeS destination with IT global companies such as IBM, Cisco, Philips, Intel, Honeywell, Seagate, LinkedIn - to name a few operating from this location. <br /><br />The location started to gain prominence in early 2000 owing to availability of land parcels, proximity to Central Business District and infrastructure developments. <br /><br />The micro-market is expected to see increased supply totalling to 27 msf during 2015-19.<br /></p>
