Technology and flexible space operators drove office space leasing in Pune, with absorption of about 1.7 million sq. ft. recorded in Q2 2022
Small-sized deals dominated absorption in the city
Pune: CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm, today announced the findings of its latest office report, ‘CBRE India Office Figures Q2 2022’. Office absorption recorded in Pune was 1.7 million sq. ft in Q2 2022. The report observed that the office sector in India witnessed a strong performance in Q2 2022, as leasing activity grew by 61% Q-o-Q to touch a record high of 18.2 million sq. ft.
Technology players drove leasing activity in Pune with a share of about 35%, followed by flexible space operators (32%) and engineering and manufacturing firms (14%). Small-sized deals dominated the transaction activity, with 65% of absorption recorded in IT spaces, 19% in non-IT spaces, and 16% in SEZs. On the supply side, project completions were driven by IT spaces with a share of 51%, followed by non-IT with a share of 49%. A few key leasing transactions were recorded in Amar Madhuban Tech Park, Westend Icon / Westend Center IV / Gateway, and BR3-Avance (Tower – A) (NSPL).
Among the major cities, on an H1 basis, office absorption stood at ~29.5 million sq. ft., recording a growth of 157%(Y-o-Y). In H1 2022, about 26.1 million sq. ft. of new completions were witnessed – increasing by 26% Y-o-Y. Bangalore, Delhi-NCR, and Hyderabad dominated absorption during the quarter, accounting for almost two-thirds of the transaction activity.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “The office sector in India reflected a strong recovery in H1 2022 as occupier sentiments were uplifted due to the relatively reduced severity of the Omicron wave, the subsequent relaxation of restrictions, and improved economic activity. It is evident from the leasing activity that employees are resuming office with a flexible approach.
CBRE’s Asia Pacific Leasing Sentiment Survey recorded a significant surge in leasing sentiments across most APAC markets in June 2022, with the highest rise witnessed in India. This also signifies that the outlook for annual space absorption for 2022 is likely to be higher than 2021.”
Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India said, “As the recovery momentum remains upbeat, differentiated and high-quality institutional supply in core markets would continue to draw flight-to-quality absorption.
In line with the expected demand, new investment-grade supply lined up across markets is expected to become operational in the coming quarters.”
