HYDERABAD: Hyderabad, along with Bengaluru, is poised to become a key player in the country’s upcoming office space supply, according to a report by CBRE South Asia Pvt Ltd. The report indicates that between 2023 and 2025, these two cities will collectively account for nearly half of the upcoming office space supply in India. Bengaluru is expected to lead with 29 per cent of the total supply, followed closely by Hyderabad at 20 per cent.
Delhi-NCR will contribute 17 per cent, Pune 12 per cent, Chennai 11 per cent, Mumbai 9 per cent and Kolkata 2 per cent. The report projects an impressive growth in office space supply, with completions in the country’s top seven cities set to exceed 165 million square feet between 2023 and 2025. This reflects an increase from the 142 million square feet recorded during 2020-2022. Bengaluru and Hyderabad are expected to remain at the forefront.
In Bengaluru, the new office developments will be concentrated in the Outer Ring Road and North Business District areas, while Hyderabad will witness most of the completions in IT Corridor II and Extended IT Corridor.
Anshuman Magazine, chairman and CEO of CBRE India, South-East Asia, Middle East and Africa, expressed optimism about the Indian office sector’s momentum. He said the substantial supply completions across top cities indicate a positive outlook, with expected growth of 15 per cent to 18 per cent from 2023 to 2025. This is driven by rising occupier demand and expansion plans by developers. The sustained technology spending by corporates is expected to make India a global office hub, attracting more Global Capability Centres from various sectors.
Ram Chandnani, managing director of Advisory and Transactions Services at CBRE India, pointed out that India continues to be an attractive investment destination for North American and European investors in the Asia Pacific region. In 2022, foreign investment in India surged by 80 per cent year-on-year, reaching US$ 2.8 billion, making it the only market in the entire APAC region to witness annual growth in capital deployment, the report added.