- Office area leasing jumped five-fold to three.5 mn sq feet YoY in H1 2022
- Flex operators led the demand at 34% share in whole leasing, leased 1.2 mn sq feet of area in the town
- Vacancy ranges declined 50 foundation factors amidst strong demand; leases set to enhance
PUNE, India, Sept. 16, 2022 /PRNewswire/ — Grade A workplace absorption in Pune is anticipated to the touch 5.5 million sq ft throughout 2022, a possible 53% improve from final yr when demand was marred by the lockdowns. Occupier confidence is again in the market, with demand backed by Flex, Consulting and Tech occupiers.
During H1 2022, workplace absorption already crossed 3.5 mn sq feet, a five-fold rise from the identical interval final yr. The H1 2022 demand has already surpassed H1 2019 demand by 120%. Year 2019 noticed the very best ever annual workplace area absorption.
Leasing traits (mn sq feet)
|
Year |
2019 |
2020 |
2021 |
H1 2022 |
|
Leasing (mn sq feet) |
5.7 |
2.8 |
3.6 |
3.5 |
Source: Colliers
Note: Data pertains to Grade A buildings
With decreasing occupier exits and a surge in demand, occupancy ranges in the town are enhancing. After a niche of two years, general emptiness ranges dipped by 50 foundation factors on a QoQ foundation. Average rents in Pune additionally noticed a marginal improve of 1.5% throughout Q2 2022. The subsequent couple of quarters are more likely to drive rental development additional, as demand is more likely to stay strong.
Trends in Grade A emptiness
|
Q1 2020 |
Q2 2020 |
Q3 2020 |
This autumn 2020 |
Q1 2021 |
Q2 2021 |
Q3 2021 |
This autumn 2021 |
Q1 2022 |
Q2 2022 |
|
|
Vacancy Rate – Pune |
6.7 % |
6.8 % |
7.6 % |
9.6 % |
10.5 % |
12.1 % |
14.9 % |
15.2 % |
15.5 % |
15.0 % |
Source: Colliers
“Leasing momentum is strengthening every quarter and occupier enquiries remain upbeat. This suggests that offices will continue to take center stage in the working ecosystem and are already witnessing growth. Pune remains a promising location for corporate and India due to its infrastructure advancements, employment opportunities, a significant proportion of the millennial workforce, and attractive real estate pricing. During H1 2022, leasing by flex operators in Pune totaled 1.2 mn sq feet, the highest seen across the top six cities. Large occupiers are also turning towards flex as a part of their hybrid working policy, providing flexibility to their employees. A healthy supply pipeline of about 25 mn sq feet in next 3 years will offer a variety of options to occupiers across multiple micro-markets,” stated Animesh Tripathi, Managing Director, Pune, Colliers.
Flex area main the expansion in a hybrid world
Flex area contributed to 34% of the overall leasing in Pune, outpacing the Technology sector which accounted for a 15% share in whole leasing. Flex areas in Pune are seeing renewed demand with many giant enterprises incorporating a flex area element in their portfolio. Various flex area operators expanded their footprints in the town throughout H1 2022 via choose giant offers (>1,00,000 sq feet) in good-quality Grade A buildings. About 80% of the overall flex leasing was via giant offers signaling occupiers’ robust desire for using flex areas. Baner and Off-CBD east (Kalyani Nagar, Koregaon Park, Viman Nagar) are the thriving flex micro-markets which witnessed most leasing exercise on account of their strong social and bodily infrastructure, and proximity to key residential places. In the approaching quarters as properly, demand for flex area will proceed to be strong, as giant occupiers proceed to pivot towards flex areas to embrace hybrid work.
Flex leasing traits
|
Year |
2019 |
2020 |
2021 |
H1 2022 |
|
Flex leasing (mn sq feet) |
0.7 |
0.3 |
0.8 |
1.2 |
|
Flex share in whole leasing (%) |
12 % |
8 % |
23 % |
34 % |
Source: Colliers
Note: Data pertains to Grade A buildings
“This is a critical time for occupiers to make strategic decisions about their workplace strategies. Flex space is no longer a stop-gap arrangement for occupiers but is a permanent part of their office portfolio. As a thriving location for IT companies, startups and entrepreneurs, Pune will continue to receive huge demand for flex spaces in the coming years,” Vimal Nadar, Senior Director, Research, Colliers India.
About Colliers
Colliers (NASDAQ: CIGI) (TSX: CIGI) is a number one diversified skilled companies and funding administration firm. With operations in 63 international locations, our 17,000 enterprising professionals work collaboratively to offer skilled actual property and funding recommendation to shoppers. For greater than 27 years, our skilled management with important inside possession has delivered compound annual funding returns of 20% for shareholders. With annual revenues of $4.5 billion and $81 billion of property beneath administration, Colliers maximizes the potential of property and actual property to speed up the success of our shoppers, our traders and our individuals.
Media Contact:
Sukanya Dasgupta
Senior Director & Head, Marketing & Communications| Colliers India
[email protected]
+91 9811867682
Riddhi Vira
Manager, Public Relations | Colliers India
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+91 9619776362
