Top eight Indian cities will have a oversupply of 39 million square feet in commercial office spaces in the next five years, said a report from global property consultant Cushman & Wakefield.
The report estimated that the top eight will generate a demand of 180 million square feet of commcercial office spaces between 2012-16 as against the supply of 219.6 million sq ft.
The highest demand will be recorded in Mumbai with an estimated 44 million sq ft over the next few five years followed by Bangalore (31 million sq ft) and NCR (27.8 milion sq ft). The top three cities will constitute approximately 57% of the total office space demand. Ahmedabad will record the lowest office demand of approximately 7.8 million sq ft in the next five years, while Kolkata will be finish one but last with demand of 8.4 million sq ft.
Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield, said:, “Based on expected recovery of the economy, partly due to global recovery, but largely due to the positive signals being sent out by the central government to promote business investments, office space demand is expected to witness a positive growth of 10% in 2013 and 20% 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.”