 "Office demand to outstrip supply in tech hubs: Study")
Growing office demand will outstrip the supply in technology-sector-driven markets such as Pune, Bengaluru, and Hyderabad, said a new report.
This should, therefore, lead to downward pressure on vacancies and an upward pressure on gross office rents in these markets, said property consultant Colliers International in the latest office markets report.
In contrast, traditional commercial markets such as Mumbai and National Capital Region are likely to remain stable in terms of rents and vacancy due to a stable demand and supply scenario, it said.
Overall, Grade A absorption totalled 9.6 million square feet, making it 28.26 million sq ft so far in 2016.
Overall office demand in current quarter failed to keep pace with the previous quarter as about 2.27 million sq ft gross leasing volume was recorded in Bengaluru. This was about 36 per cent less than the last quarter.
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"Despite decrease in overall leasing volume, the city has strong demand fundamentals as we recorded several pre-commitments and build-to-suit transactions during the quarter," Colliers said.
An uptick in absorption was observed in the Pune commercial market since last quarter with 0.9 million sq ft, making it 2.74 million sq ft this year.
"Pune market promises significant talent pool in the information technology sector and, hence, the sector continues to thrive in the region,"it said.
