Office space demand seen at 180 m sq.ft. in next 5 years

The demand for commercial office space is likely to be over 180 million square feet (msf) in the next five years (2012–16) in the top eight cities of the country, according to real estate consultancy Cushman Wakefield.

In a report titled ‘Evolving Paradigm — Future of Indian Real Estate’ brought out in association with the Global Real Estate Institute (GRI), it estimates the total expected supply for the next five years in these eight cities at 219. 6 million sqft. This is based on announced projects and the current pace of construction indicating excess supply in the coming few years.

The highest demand will be recorded in Mumbai with an estimated 44 msf over the next few five years, followed by Bangalore (31 msf) and NCR (27.8 msf). The top three cities will constitute approximately 57 per cent of the total office space demand. Ahmedabad will record the lowest office demand of approximately 7.8 msf in the next five years, while Kolkata would finish one but last with demand of 8.4 msf.

The Executive Managing Director, South Asia, Cushman & Wakefield, Sanjay Dutt, in a statement said: “Based on the expected recovery of the economy, office space demand is expected to witness a positive growth of 10 per cent in 2013 and 20 per cent in 2014.”

This is, however, likely to reduce over the next two years (2015-16) drawing from the forecasts that predict a slowdown in global GDP.

Mumbai is also expected to see the highest supply in the next few five years with an estimated 52.6 msf of fresh office space supply, followed by the NCR (43.8 msf) and Bangalore (31msf) in the next five years.

rishikumar.vundi@thehindu.co.

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