Office space supply rose by 46 per cent during January-March period in the nine major cities to 13.4 million sq ft as real estate developers look to cater rising demand of commercial areas from corporates and co-working operators, according to CBRE data.
The supply stood at 9.2 million sq ft in the January-March period of 2018 in the nine cities — Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad and Kochi. Hyderabad witnessed a sharp jump in supply to 5.2 million sq ft from 0.7 million sq ft during the period under review.
The increase in supply was because of rising demand of office space in Hyderabad, which for the first time overtook Bengaluru, at 3.5 million sq ft in the January-March period of 2019. As per the data, in the Delhi-NCR, the office space supply rose to 1.5 million sq ft in the first quarter of 2019 calendar year, from 1.2 million sq ft in the year-ago period. Office space supply went up in Chennai to 0.5 million sq ft from 0.2 million sq ft.
Mumbai saw supply declining to 1.3 million sq ft from 1.8 million sq ft, while supply dipped in Bengaluru to 2.6 million sq ft from 3.9 million sq ft. Pune, too, saw fall in supply to 0.2 million sq ft from 1.2 million sq ft. The office space supply in Kolkata remained flat at 0.2 million sq ft, while Ahmedabad city had supply of 1.8 million sq ft from nil, in the year-ago period.
“SEZs continued to account for a third of the quarter’s supply, rising by almost 40 per cent as compared to Q1 2018. Almost the entire SEZ supply in Hyderabad in particular was pre-committed as developers refrain from investing in speculative development in this segment,” CBRE said in its India Office, Q1 2019 report.