Three main cities in south India — Bengaluru, Hyderabad and Chennai — dominate India’s workplace market with the contribution of 66 per cent of the whole demand for workplace area over the past monetary yr 2020-21, in accordance with Anarock report.
The marketing consultant famous that the primary southern workplace market has overtaken different areas when it comes to new provide, web absorption, and even rental development.
Among the many top-seven cities, Bengaluru, Hyderabad and Chennai noticed their share of whole workplace leasing improve to 66 per cent within the 2020-21 fiscal yr as towards 47 per cent in FY18.
The online workplace absorption in FY21 within the prime cities was 21.32 mn sq ft, of which these three southern cities absorbed about 14.06 million sq ft.
Mumbai Metropolitan Area and Pune absorbed 4.56 million sq ft (21 per cent) and NCR 2.3 million sq ft (a mere 11 per cent share).
Throughout the monetary yr 2017-18, 31.15 million sq. ft of workplace area have been leased within the top-7 cities.
Of this web absorption, the southern cities collectively accounted for 47 per cent, the western area 33 per cent and the northern area 17 per cent.
Anarock Chairman Anuj Puri stated, “The exceptional development within the workplace market of those three southern cities when seen towards their western and northern counterparts is instantly attributable to sturdy demand by the IT/ITeS sector, reasonably priced leases, and the exponential development of start-ups regionally over the previous few years.”
The manufacturing and industrial sectors are additionally driving demand in these three cities, he added.
When it comes to new workplace provide additionally, the southern cities have elevated their share from 40 per cent in FY18 to just about 63 per cent in FY21.
Of the whole new workplace area completion of 40.25 mn sq ft in FY21 throughout the top-seven cities, the southern cities had a 63 per cent share (about 25.55 million sqft.).
The workplace provide share of the primary western markets fell to only 19 per cent in FY21 from 40 per cent in FY18, the marketing consultant stated.
“Notably, between FY18 and FY21, workplace leases in every of the southern cities have additionally proven double-digit development,” Anarock stated.
Throughout the interval below overview, workplace leases in NCR remained roughly stagnant, whereas MMR and Pune noticed a mere 2 per cent and eight per cent rental development, respectively.
In Bengaluru, the common month-to-month workplace leases elevated by 15 per cent to Rs 77 from Rs 67 per sq ft in FY18.
Leases in Chennai have grown by 11 per cent to Rs 60 from Rs 54 per sqft in FY18.
“In Hyderabad, common month-to-month workplace leases rose from Rs 51 per sqft in FY18 to just about Rs 57 per sqft in FY21 (up 12 per cent),” Anarock stated.
The common month-to-month leases in MMR elevated from Rs 123 per sqft in FY18 to Rs 125 per sqft in FY21.
Pune noticed common leases rise by 8 per cent to Rs 68 from Rs 63 per sqft in FY18.
In NCR, common workplace leases remained flat at Rs 78 per sq ft.
(Solely the headline and movie of this report might have been reworked by the Enterprise Normal employees; the remainder of the content material is auto-generated from a syndicated feed.)
Enterprise Normal has all the time strived exhausting to supply up-to-date data and commentary on developments which might be of curiosity to you and have wider political and financial implications for the nation and the world. Your encouragement and fixed suggestions on find out how to enhance our providing have solely made our resolve and dedication to those beliefs stronger. Even throughout these tough instances arising out of Covid-19, we proceed to stay dedicated to holding you knowledgeable and up to date with credible information, authoritative views and incisive commentary on topical problems with relevance.
We, nevertheless, have a request.
As we battle the financial impression of the pandemic, we’d like your assist much more, in order that we are able to proceed to give you extra high quality content material. Our subscription mannequin has seen an encouraging response from a lot of you, who’ve subscribed to our on-line content material. Extra subscription to our on-line content material can solely assist us obtain the targets of providing you even higher and extra related content material. We consider in free, honest and credible journalism. Your assist by means of extra subscriptions can assist us practise the journalism to which we’re dedicated.
Assist high quality journalism and subscribe to Enterprise Normal.