Last year saw absorption of office spaces of 30.1 million sq ft against new supply of 34.8 million sq ft and in 2019, there was absorption of 44. 8 million sqft against new supply of 33.4 sqft. Rooting on demand revival next year, top property developers are looking to add millions of square feet of office properties
in the next three to five years.
The developers have set the ball rolling on big projects, as the demand for workspace is once again going up after the pandemic-induced disruption.
Property consultant Colliers expects a fresh office property supply of between 33 and 38 million sq ft every year in the next three years, including the current one.
Last year saw absorption of office spaces of 30.1 million sq ft against new supply of 34.8 million sq ft and in 2019, there was absorption of 44. 8 million sqft against new supply of 33.4 sqft. Backed by strong demand from technology companies, Bengaluru-based developers such as RMZ, Prestige Estates, Embassy Office Parks REIT have taken a lead in adding the spaces.
RMZ, promoted by Menda family, has 30 million sqft under various stages of construction across Bengaluru, Chennai, Hyderabad, Pune and Mumbai markets, and it would be delivering four million sqft by the end of 2022, said Raj Menda, corporate chairman, RMZ.
Sectors such as IT/ITes, BFSI, health sciences industry have been performing well through 2020 and clients have been adding their head count and acquiring new business verticals, resulting in expanding their real estate footprint, Menda said. Prestige is looking to add 40 million sqft in next five years, of which 28 million sqft will be in Bengaluru, said Juggy Marwah, CEO, Prestige Office Ventures.
Embassy Office Parks REIT is developing 5.7 million sqft of projects that are expected to be delivered in the next three years. About 70 per cent of the development is in Bengaluru, said its deputy chief executive & COO Vikaash Khadloya. “100 per cent of our near-term delivery is already pre-committed to JP Morgan,” he said.
DLF, including its JVs, is developing 11.4 million sqft of space in Gurugram, Chennai, and Noida. Hiranandani is planning to develop nearly 4 million sq ft commercial space across Powai, Thane, Panvel. US-based investor-cum-developer Hines is looking to add three million sqft in the next three years.
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