CBRE sees 165 mn sq ft of new office supply in top 7 cities during 2023-25
New Delhi: Bengaluru and Hyderabad will contribute 49 per cent to the total upcoming office space supply of over 165 million square feet estimated during the 2023-2025 period across seven major cities, according to CBRE..
Real estate consultant CBRE South Asia on Thursday released its new report 'Office Myths Debunked'.
As per the report, the office supply completions across seven major cities are expected to exceed 165 million square feet between 2023-2025, which is significantly higher than 142 million square feet recorded during the 2020-2022 period.
Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, The office sector in India is witnessing good growth momentum. The substantial supply completions across top cities in India is projected to exceed 165 million sq. ft. over 2023-2025, indicating a positive outlook for the office sector.".
The average annual office supply increased by a robust 17 per cent and the average building size increased by a significant 18 per cent over the three-year period from 2020 to 2022, he added..
"This growth is expected to further accelerate by 15-18% during the next three-year period from 2023 to 2025, supported by strengthening occupier demand and developers' expansion plans," Magazine said.
The country's cost and scale advantages would drive global corporates to set up more Global Capability Centres (GCCs) across various sectors, he believed.
Bengaluru and Hyderabad will continue to dominate this upcoming office space supply, accounting for nearly half the overall supply between 2023-2025.
Bengaluru will lead the office space supply, accounting for 29 per cent (47.8 million square feet) of the total supply during 2023-25 period, CBRE data showed.
Hyderabad will account for 20 per cent share (33 million sq ft) in total supply, Delhi-NCR 17 per cent (28 million square feet), Pune 12 per cent (19.8 million square feet) , Chennai at 11 per cent (18.15 million square feet), Mumbai 9 per cent (14.8 million sq ft) and Kolkata at 2 per cent (3.3 million square feet).
