CBRE South Asia Pvt. Ltd report highlights that office supply completions across the top 7 cities in India are expected to exceed 165 mn. sq. ft. between 2023-2025, which is significantly higher than 142 mn. Sq. ft. recorded during the 2020-2022 period. The strong growth reflects the positive outlook of the developers. As per the report, Bangalore and Hyderabad will continue to dominate this upcoming office space supply, accounting for nearly half the overall supply between 2023-2025.
Between 2023-2025, Bangalore will lead the office space supply, accounting for 29% of the total supply in India, followed by Hyderabad at 20%, Delhi-NCR at 17%, Pune at 12%, Chennai at 11%, Mumbai at 9% and Kolkata at 2%.
New office development completions in Bangalore will be concentrated in the Outer Ring Road, North Business District area, while in Hyderabad IT Corridor II, Extended IT Corridor will see most of the new completions. Delhi-NCR’s new office space completions will be dominated by the Expressway, Golf Course Road extension, while Pune will see most completions in Peripheral Business District NE, South Business District NW. Upcoming new office supply in Chennai will be mainly witnessed in OMR Zone 2, MP Road, while in Mumbai, it will be in the Navi Mumbai Business District, EX Business District, and Kolkata, new office supply will be primarily in the Peripheral Business District, South Business District.
Despite prevailing economic conditions, IT expenditure in India is expected to remain robust throughout 2023. This resilience is attributed to corporations’ continued focus on enhancing employee productivity, improving customer experiences, and optimizing operations. The demand for office space was primarily driven by BFSI, technology, and pharmaceutical companies, accounting for a ~50% share in Jan-Sep 2023, with expectations of sustained leasing activity in the long term.
The report highlights a positive trend in hiring in India, with a significant upswing in 2022, witnessing a moderate increase in total jobs compared to the previous year. It projects continued growth in the annual employment rate for office-going professionals in the six major cities, forecasting an 11% increase in 2023. This indicates a promising outlook for the country's job market and employment opportunities, reflecting increased economic activity and demand for talent.
