Hyderabad among top-3 in office space demand

Vacancy of office space lowest at 4% in Bengaluru, 5% in Pune

New Delhi: Demand for office space is encouragingly increasing in Hyderabad, which is ranked after Bengaluru and Pune. Bengaluru has the lowest vacancy of office space at nearly
four per cent among the seven major cities on account of robust demand from corporates, according to a latest report by property consultant JLL India.

The demand of office space is expected at eight million sq ft in the 2017 calendar year against 8.6 million sq ft occupied in last year.

JLL India CEO and Country Head Ramesh Nair said: “Among the seven major office markets in India, Bengaluru continues to have the lowest vacancy levels at slightly less than 4 per
cent.

In a trend led by the IT capital of India, how can other IT cities be far behind? Pune and Hyderabad too have vacancy levels at over five per cent and nine per cent respectively.” The
vacancy level in Chennai is around 11 per cent, Mumbai 18 per cent, Kolkata at over 27 per cent and Delhi-NCR almost 31 per cent.

At a pan-India level, the average vacancy in commercial real estate stood at 15 per cent as of the fourth quarter of 2016, the report said.

“From these figures, it is clear that IT hubs continue to see a good supply-demand equilibrium compared to other markets in the country,” Nair said. He advised the developers in these IT
hubs, especially Bengaluru and Pune, to look into addressing the existing space crunch before the situation forces occupiers to consider some other cities.